A jumbo loan is a type mortgage that exceeds the limits set by the Federal Housing Finance Agency and it cannot be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac.

For 2024, the conforming loan limit for a one-unit property in much of the country is $766,550. In high-cost areas, loans are capped at $1,149,825.

Mortgage loans are allowed to exceed the Conforming and the so-called Non-Conforming loan limits. Loans above these limits are called Jumbo mortgages. The cost of obtaining a Jumbo Loan might be higher than the cost of obtaining a mortgage with a Conforming loan amount.
The advantages of obtaining a Jumbo Loan are access to higher loan amounts that the so-called Conforming Loan Limits.

The advantages of obtaining a Jumbo Loan are access to higher loan amounts that the so-called Conforming Loan Limits. The downside of a Jumbo Loan is that the approval process is more stringent and requires a stellar credit history and scores above 700 as well as lower debt-to-income ratios (usually bellow 43%).