The following explains the various factors that play into the concept of a jumbo loan

A jumbo loan is a type of mortgage that exceeds the conforming loan limits established by government-sponsored enterprises like Fannie Mae and Freddie Mac. These limits vary by location and are higher in more expensive housing markets. Jumbo loans are used to finance higher-priced properties, often those exceeding the standard loan limits. Due to the larger loan amounts, jumbo loans typically have stricter qualification criteria, higher interest rates, and larger down payment requirements compared to conforming loans. They are commonly sought for luxury or high-value real estate transactions.