Jumbo loans are a type of mortgage designed for homebuyers looking to purchase high-value properties that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are ideal for those in competitive real estate markets or individuals seeking luxurious homes with higher price tags. Unlike conventional loans, jumbo loans are not guaranteed by Fannie Mae or Freddie Mac, which means they often come with stricter credit requirements, larger down payments, and slightly higher interest rates. However, they provide the financial flexibility needed to secure your dream home when a standard mortgage isn’t enough. If you're considering a jumbo loan, make sure to work with a lender who understands your unique needs and can guide you through the process with confidence.

Additional Details: Consumer Financial Protection Bureau (1/12/2024)