Jumbo mortgages are home loans that exceed Conforming1 loan limits. A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio and a higher credit score, a jumbo loan may be right for you.
The limit on conforming loans varies by county and in rare instances even by neighborhood, but jumbo mortgages can exceed these limits.
1The conforming loan limit is the dollar cap on the size of a mortgage Freddie Mac and Fannie Mae are willing to buy or guarantee. Mortgages that meet the support requirements by the two agencies are known as conforming loans. The limit is set by the FHFA every year in November and designated by the county
