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Mortgage Glossary

Jumbo Loan

Mike Starr·Reviewed August 2026

A jumbo loan exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because these loans cannot be purchased by Fannie Mae or Freddie Mac, they carry stricter qualification requirements, including higher credit scores, larger down payments, and lower debt-to-income ratios. Jumbo rates may be slightly higher or lower than conforming rates depending on market conditions.