Jumbo Loan.

In plain English

A jumbo loan is any mortgage that exceeds the conforming loan limit set each year by the FHFA for your county. Because Fannie Mae and Freddie Mac cannot buy these loans, the lender either keeps the loan or sells it privately, which puts more of the risk on them. To offset that risk, lenders usually require a higher credit score, a larger down payment, and more months of cash reserves than a conforming loan would. Rates on jumbo loans are sometimes close to conforming rates and sometimes higher, depending on the market.

01Why it matters

If you are buying in an expensive area, you may need a jumbo loan, which means saving a bigger down payment and keeping more cash on hand. The tighter rules can also slow down or complicate your approval.

02The math, step by step

For 2026 the baseline one-unit conforming limit is $832,750 in most counties, though high-cost areas are higher and your county may differ. Say you need to borrow well above your county's limit for a $1.1 million home. A lender might require a 20 percent down payment, a credit score above 700, and six to twelve months of mortgage payments saved in reserve before approving the jumbo loan.

03What this is NOT

04Receipts

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