A mortgage that exceeds conforming loan limits set by Fannie Mae and Freddie Mac, used for higher-value properties.
Full Definition
Jumbo loans finance properties above the conforming loan limit, which is $766,550 in most US counties for 2024 (higher in high-cost areas like San Francisco, New York, and Hawaii). Because they exceed Fannie/Freddie limits, jumbo loans can't be sold on the secondary market and lenders take on more risk. As a result, jumbo loans typically require stronger credit (usually 700+), larger down payments (10–20%), and more cash reserves. Rates may be slightly higher or lower than conforming loans depending on market conditions. Self-employed borrowers and high-net-worth individuals with complex income are common jumbo borrowers.
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