A mortgage for amounts that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. Usually requires stronger credit, more reserves, and a slightly higher rate.
A jumbo loan is any conventional mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency — in 2026, that's about $806,500 in most of the country (higher in high-cost areas).
Because jumbo loans are too big for Fannie Mae or Freddie Mac to buy, lenders hold them on their own books or sell them to private investors. That added risk means tighter qualification: typically a credit score of 700+, a debt-to-income ratio under 43%, and significant cash reserves (sometimes 6–12 months of payments).
The trade-off is access to the price points you need in expensive markets. Rates on jumbos used to run noticeably higher than conforming loans — these days the gap is small, sometimes a wash.
Example
A $1.2M home in Austin, TX would likely need a jumbo loan if you're putting 20% down ($240K), since the $960K loan exceeds the conforming limit. Expect to show stronger reserves — maybe $50K-$100K in liquid savings beyond closing costs.
Also known as
jumbo mortgage, non-conforming loan, super jumbo