Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans.
Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes.
A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you. The limit on conforming loans is $424,100 in most areas of the country, but jumbo mortgages can exceed these limits.