Jumbo mortgages are used to purchase properties with steep price tags—often those that run into the millions of dollars. A jumbo home loan is a mortgage that exceeds the maximum conforming loan amounts. $510,400 in most areas of the U.S.
Jumbo mortgages tend to fall outside conforming loan restrictions, typically because they exceed the maximum amount backed by government-sponsored enterprises like Fannie Mae or Freddie Mac. In order to qualify for a jumbo loan, borrowers need to have an excellent credit score, be in a higher income bracket and have low debt-to-income (DTI) ratios.