A jumbo loan is a mortgage that exceeds the Fannie Mae and Freddie Mac loan limits. In most U.S. counties, the 2024 conforming limit is $806,500. In some higher priced counties, the loan limits for Fannie Mae and Freddie Mac loans are increased to assist buyers and homeowners with additional loan options. You can find the loan limits for your county from the Federal Housing Finance Agency at their website, https://www.fhfa.gov/data/conforming-loan-limit
Because jumbo loans are not backed by Fannie Mae or Freddie Mac, lenders take on more risk if a borrower defaults. As a result, these loans typically require stronger credit profiles, larger down payments, and more thorough documentation.
Jumbo mortgages can come with either fixed or adjustable interest rates and are available in a range of repayment terms—offering flexibility for higher-value home purchases.