Jumbo loan
A mortgage exceeding the conforming loan limit set by Fannie Mae and Freddie Mac (≈$806,500 for a single-family home in most areas for 2025; higher in designated high-cost markets). Jumbo loans can’t be sold to the GSEs, so lenders set their own guidelines — typically requiring higher credit scores, more reserves, and a larger down payment.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Portfolio loan — A loan the originating lender holds on its own balance sheet rather than selling to Fannie, Freddie, or invest…
- Conventional loan — A mortgage that conforms to Fannie Mae and Freddie Mac guidelines. Not government-insured. Lowest rates for bo…
- FHA loan — A mortgage insured by the Federal Housing Administration. Allows lower down payments (3.5% with 580+ credit),…
- VA loan — A mortgage guaranteed by the Department of Veterans Affairs, available to eligible service members, veterans,…
- USDA loan — A mortgage backed by the U.S. Department of Agriculture for homes in eligible rural areas. Zero down payment,…
← Back to the full mortgage glossary
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.