The difference is the county loan limit. A conforming loan is at or under it and follows Fannie Mae and Freddie Mac rules; a jumbo loan is above it and follows each lender’s own rules.
Side by side
| Conforming loan | Jumbo loan | |
|---|---|---|
| Loan size | At or under the county limit, including high-balance loans in high-cost counties | Above the county limit |
| Rules | Fannie Mae and Freddie Mac guidelines | Each lender’s own guidelines |
| Credit and reserves | Standard agency requirements | Usually stronger credit and more reserves |
| Appraisal | One, sometimes waived | Often one or two full appraisals |
| Pricing | Set by agency pricing | Can be competitive with conforming for strong borrowers |
When a conforming loan fits
- Your loan fits under the county limit, including a high-balance limit.
- You want the most flexible credit and down payment options.
When a jumbo loan fits
- The loan amount is above your county’s limit.
- You have strong credit and reserves, which can earn jumbo pricing close to conforming.
Guides and calculators
- Jumbo loans
- Conventional loans
- Loan limits by county
- Mortgage reserves calculator
- Home affordability calculator
Questions
Is a high-balance loan a jumbo loan?
No. A high-balance loan is still conforming: it is above the standard limit but within the higher limit for a high-cost county, and it follows Fannie Mae and Freddie Mac rules, sometimes with slightly different pricing. Only a loan above the county’s limit is jumbo.
How do I know if my loan is jumbo?
Check your county in the loan limits lookup: enter the county, the number of units and the loan amount. See also: Loan limits by county.
Are jumbo rates always higher?
Not always. For strong borrowers, jumbo pricing can be close to conforming, and sometimes lower. It depends on the lender and the file.
