What Is Jumbo Loan?
A jumbo loan is a mortgage larger than the conforming loan limit set annually by the Federal Housing Finance Agency, meaning it can't be purchased by Fannie Mae or Freddie Mac and typically requires stronger credit and a larger down payment.
Jumbo Loan vs. Conforming Loan
At or below the FHFA's annual loan limit — eligible for purchase by Fannie Mae or Freddie Mac.
Above the conforming loan limit — can't be sold to Fannie Mae or Freddie Mac, typically requiring stronger credit and a larger down payment.
Related Terms
More Financing Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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