Jumbo Loans

A jumbo loan is a type of mortgage used to finance homes that cost more than the conforming loan limits set by government agencies, such as Fannie Mae and Freddie Mac. Because these loans exceed standard limits, they are considered riskier for lenders, often requiring higher credit scores, larger down payments, and stricter qualification criteria. Jumbo loans typically have higher interest rates and fewer flexible terms. They are commonly used by buyers of luxury or high-cost properties, enabling them to borrow larger amounts than standard loans allow.