|
A jumbo loan is a mortgage that exceeds the dollar amount set by the Federal Housing Finance Agency, and hence cannot be secured by Fannie Mae or Freddie Mac.
Jumbo loans require borrowers to have very good credit scores and very low debt-to-income, because they’re not secured by Fannie Mae or Freddie Mac. Jumbo loans traditionally had much higher interest rates, but this has receded recently.
Related Links
Investopedia’s article on jumbo loans
NerdWallet’s article on jumbo loans
| 
