Jumbo loans exceed Fannie Mae’s or Freddie Mac’s loan limits. The Federal Housing Finance Agency sets loan limits. Since Fannie Mae and Freddie Mac do not guarantee these loans, Jumbo loans can be fixed or adjustable. It is generally harder to qualify for a jumbo loan because they are perceived as a little riskier than a conforming loan.
Jumbo vs. Conforming
|More likely to require a 20% down payment
|Lower down payment amounts are acceptable
|Slightly higher interest rates
|More competitive interest rates
|Slightly higher closing costs
|Lower closing costs
|Loan Limit above*
|Loan Limit below*
*See Loan Limits by county.