Jumbo loan

Any loan that allows you to borrow more than an amount set by the Federal National Mortgage Association (Fannie Mae)

If you want to borrow over $240,000 for a single-family home, or over $307,100 for a two-family home in the continental US, you have to apply for a jumbo loan. In Hawaii and Alaska, you need a jumbo loan if you plan to borrow over $360,000 for a single-family home or over $460,650 for a two-family home.

Most commercial lenders agree to use these guidelines, which are set by the Federal National Mortgage Association. Jumbo loans have higher interest rates and fewer financing options, and are also called non-conforming loans.