Jumbo loans

A jumbo loan is any loan that exceeds conforming guidelines. Since Fannie Mae and Freddie Mac's charter are focused on servicing America's low, moderate and middle income home buyers, loan amount limits filter high-income borrowers.

FHA loans institute even lower loan amount limits than does Fannie Mae and Freddie Mac. As of January 2000, the maximum loan amount limits for conforming loan programs are as follows:

  • Single-unit home or condominium unit: $240,000
  • Two-unit residential properties: $207,000
  • Three-unit residential properties: $371,200
  • Four-unit residential properties: $461,350

Both Fannie Mae and Freddie Mac adjust their conforming limits—usually in cooperation with each other—to reflect increases in average home prices and mortgage loan amounts. These are the conforming (Fannie Mae and Freddie Mac) conventional loan limits. For more information, please see the "Jumbo Loan Programs" article.

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