Jumbo Loan

A jumbo loan (or jumbo mortgage) is a type of financing in which the loan amount exceeds the Federal Housing Finance Agency's conforming loan restrictions (FHFA). The conforming loan ceiling for 2021 is $548,250 in most locations and $822,375 in high-cost areas. Jumbo loans are a good option for borrowers who want to buy more expensive houses. This mortgage option has the extra benefit of not requiring mortgage insurance. However, because this loan may pose a more considerable risk to the lender, it usually has more demanding qualifying standards than standard conforming loans with lesser ceilings.