Jumbo loans, or jumbo mortgages, refer to home loans that exceed conforming loan limits as defined by the Federal Housing Finance Agency (FHFA). In addition, jumbo loans are not scrutinized or guaranteed by Freddie Mac or Fannie Mae.
How Much Can You Borrow?
Conforming loan limits set by the FHFA vary area-wise and may change each year. In 2021, the maximum limit for a single-family home in most parts of the country was set at $548,250.
Loan amounts above $548,250 are now considered jumbo loans and you may secure financing up to $2 million.