Jumbo Loans
A type of mortgage that exceeds the conforming loan limits set as eligible for purchase by government-sponsored enterprises.
More Details
A jumbo loan is a type of mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In most parts of the country, the conforming loan limit is $548,250 for a single-family home. In high-cost areas, the conforming loan limit may be higher.
Example
If the conforming loan limit in your area is $548,250 and you want to buy a home that is priced at $750,000 but are unable to make a down payment large enough to bring the loan amount below the conforming loan limit, you will need to apply for a jumbo loan to finance the purchase.
Related Terms
Balance Transfer
A financial transaction in which an individual moves their outstanding credit card balance to a new card.
Credit Score
A numerical representation of an individual's creditworthiness, used by lenders to determine the likelihood of repayment.
Home Equity Line of Credit (HELOC)
HELOC stands for home equity line of credit, which is a type of loan that allows a homeowner to borrow against the equity in their property.

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