Definition
Jumbo loans exceed conforming loan limits ($832,750 for a one-unit home in most areas in 2026) and don't qualify for Fannie Mae/Freddie Mac backing. They typically require 10-20% down, 700+ credit scores, and lower debt ratios. Rates may be higher or lower than conforming depending on market conditions.
Where you’ll meet it
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Conforming loan limits are set each year by county: $832,750 for a one-unit home in most areas in 2026, and higher in high-cost areas. Jumbo loans don't qualify for Fannie Mae/Freddie Mac backing and carry different requirements: often 10-20% down, 700+ credit score, and lower DTI limits. Interest rates may be higher or lower than conforming loans depending on market conditions.
Pro Tip
Jumbo loans often require larger down payments and higher credit scores; shop multiple lenders as terms vary widely for these loans.
Example
A $2,000,000 home purchase requires a jumbo loan because the mortgage exceeds the 2026 conforming limit of $832,750.