A jumbo loan is any mortgage above the conforming loan limit ($766,550 in 2026 for most counties, higher in expensive areas). Because they can't be sold to Fannie Mae or Freddie Mac, jumbos are kept on the lender's books or sold to private investors, which means stricter underwriting.
Expect higher credit requirements (typically 700+), bigger reserves (often 6–12 months of mortgage payments), and full-doc income verification. Some jumbo lenders require two appraisals on properties above a certain price point.
Jumbo rates have been competitive with conforming rates for years — sometimes even lower. If you're at or near the conforming limit, get a jumbo quote alongside conforming and compare.