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Jumbo loan

Jumbo loan

What is a Jumbo Loan?

Jumbo loan is a mortgage that exceeds the limits set by Fannie Mae and Freddie Mac. In 2022, the jumbo loan limit in the United States (excluding Hawaii and Alaska) is $647,200.

One reason why mortgage rates are low relative to loans is because government sponsored entities (GSEs), Fannie Mae and Freddie Mac, purchase originated loans that have been underwritten according to the right standards. Jumbo loans cannot be purchased by Fannie and Freddie because the loan exceeds the limit.

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