U.S. Mortgage Index

Jumbo loan

Definition

A jumbo loan is a mortgage larger than the size limit Fannie Mae, Freddie Mac, and their regulator set for loans they will buy. That size idea is the conforming limit. This page does not publish the current dollar figure.

In plain English

Most conventional loans fit the size the government-sponsored enterprises will purchase. A jumbo loan is larger than that applicable limit. Jumbo is about size, not about whether the loan is government-insured. An FHA or VA loan uses different program rules. This page does not quote a current cap.

Technical definition

CFPB’s Jumbo loan heading explains that FHFA, Fannie Mae, and Freddie Mac set a maximum amount those enterprises will buy from lenders. Current dollars belong to those official sources.

Why it matters

Pricing and documentation for jumbo loans often differ from conforming conventional loans. Size is the reason.

Commonly confused with

Sources reviewed

Important note

This page does not state the current jumbo or conforming dollar limit.