A loan that is above conventional conforming loan limits is called a jumbo loan. This limit is set by Fannie Mae and Freddie Mac, who purchase loans from lenders. If a loan amount is higher than $424,100, then neither of the two government-sponsored entities will purchase that loan. Typically, both Fannie and Freddie buy the bulk of U.S. residential mortgages from banks and other lenders, freeing up liquidity to lend more mortgages.
To sum it up, a jumbo loan is one with an amount more than $424,100.
Interested in getting prequalified for a jumbo loan, then click on the blue button to get prequalified.