Rates & Loans
What is the difference between a conforming loan and a jumbo loan?
Updated Jul 1, 2026
The short answer
A conforming loan meets the size limits set each year by the Federal Housing Finance Agency, which lets it be sold to Fannie Mae or Freddie Mac. A jumbo loan exceeds those limits and is not eligible for purchase by them, so it usually has stricter credit, income, and down-payment requirements. The conforming limit rises over time and is higher in designated high-cost areas.
Key points
- Conforming loans fit FHFA size limits; jumbos exceed them.
- Limits are set annually and are higher in high-cost areas.
- Jumbos often require stronger credit and larger down payments.
- Loan size can affect the rate you are offered.
Why the limit matters
Crossing from a conforming to a jumbo loan can change your qualifying requirements and pricing. In high-cost counties the conforming ceiling is elevated, so the same loan amount may be conforming in one area and jumbo in another.
Sources
Every claim above traces to a public government source.