# Jumbo loan

> A jumbo loan is a mortgage larger than the FHFA conforming loan limit, so Fannie Mae and Freddie Mac can’t buy it. The 2026 threshold and what changes.

URL: https://mortgage-math-us.com/glossary/jumbo-loan/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**A jumbo loan** is a conventional mortgage larger than the conforming loan limit for its county — above $832,750 for a one-unit home in most of the US in 2026, and above as much as $1,249,125 in high-cost areas. Because Fannie Mae and Freddie Mac can’t buy it, the lender keeps the loan or sells it to private investors.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| 2026 baseline conforming limit | $832,750 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |
| 2026 high-cost conforming ceiling | $1,249,125 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |

## What changes above the limit

There is no national rulebook for jumbo loans, so each lender or investor sets its own standards. Lenders commonly ask for higher credit scores, larger down payments and more cash [reserves](https://mortgage-math-us.com/glossary/reserves/) than on a [conforming loan](https://mortgage-math-us.com/glossary/conforming-loan/), and the CFPB notes that a jumbo mortgage may cost more. Most are still covered by the ability-to-repay rule, and many are written as [Qualified Mortgages](https://mortgage-math-us.com/glossary/qualified-mortgage/).

## Example: crossing the line

In a county at the baseline limit, a $1,000,000 home bought with 10% down needs a $900,000 loan — $67,250 over the limit, so it’s a jumbo loan. A down payment of $167,250 (16.7%) would bring the loan down to the limit and keep it conforming. Check your county’s figure under [conforming loan limit](https://mortgage-math-us.com/glossary/conforming-loan-limit/), and see the [jumbo loans guide](https://mortgage-math-us.com/loan-types/jumbo-loans/) for typical requirements.

## Related terms

- [Non-QM loan](https://mortgage-math-us.com/glossary/non-qm-loan/), another kind of loan outside the Fannie Mae and Freddie Mac rules

## Sources

- [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) — 2026 baseline conforming loan limit (one-unit); 2026 high-cost area conforming ceiling (one-unit) (2026 limit)
- [CFPB: What is a jumbo loan?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-jumbo-loan-en-116/)
- [FHFA: Conforming loan limit values for 2026](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026)

_General information, not financial advice._