Jumbo Loan

A jumbo loan is a type of mortgage used to buy a home that exceeds the conforming loan limits set by government-sponsored enterprises like Fannie Mae and Freddie Mac. Since these loans are larger than standard limits, they often come with stricter eligibility criteria and higher interest rates. Jumbo loans are typically used for luxury or high-cost homes, and lenders assess the borrower’s financial stability more carefully due to the increased loan amount. Essentially, a jumbo loan bridges the gap when the property's price exceeds conventional borrowing limits.