A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The conforming loan limits are set by the Federal Housing and Finance Agency (FHFA) and change every year. For 2024, the upper limit is $766,550 to $1,149,825, depending on the county the property is located in. Check out the FHFA's Interactive Map to quickly find your limit. location. Jumbo loans are mortgages that exceed these limits as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan.
Also called non-conforming conventional mortgages, jumbo loans are considered riskier for lenders because these loans can't be guaranteed by Fannie and Freddie, meaning the lender is not protected from losses if a borrower defaults. Jumbo loans are typically available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms.
