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The Fed made no move at its September meeting, but you'll want to read what the Fed said about future policy and implications for mortgage rates.

The Fed made no move at its September meeting, but you'll want to read what the Fed said about future policy and implications for mortgage rates.

What loan amount does a mortgage need to be for it to be considered a Jumbo Loan?

Keith Gumbinger

Q: What loan amount does a mortgage need to be for it to be considered a Jumbo Loan?

A: This question used to have a simple answer, since there was a "bright line" definition -- the conforming loan limit. Back in 2008, Congress decided to let Fannie Mae, Freddie Mac and the FHA offer "high-limit" loans in some of the most expensive housing markets.

What was a simple break point between conforming and jumbo became a mess of loan limits based upon median home prices. In most markets, the conforming loan limit is $726,200, and loans with amounts above that level are considered jumbos. However, in certain "high-cost" markets, the conforming loan limit runs as high as $1,089,300 (and loan amounts above this in these markets would be a jumbo).

In still other markets, the maximum conforming loan amount runs somewhere between the standard $726,200 limit and the maximum-maximum $1,089,300 limit.

Related: See top jumbo loan lenders

These "expanded conforming" or higher "agency jumbo" offers are available in only 133 of the 3,234 counties, parishes and territories around the country. If you are curious about what's applicable in your area, we've captured a spreadsheet from the GSEs which can allow you to look up your market to see if an "agency jumbo" is available to you. It's available here (XLS file).

Resources: See current conforming loan limits and a history of conforming loan limits.

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Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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Q: What does the term ‘conforming’ mean?
SEP 21, 2023
A:

Simply put, a "conforming" mortgage "conforms" to a set of standards so that the loan can be eligible to be sold to Fannie Mae or Freddie Mac.

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Q: Can you recommend a company specializing in mortgage modifications?
AUG 29, 2023
A:

No, we're not in a position to do that, but you should be careful when reviewing offers that haven't come from your mortgage servicer.

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Q: How are mortgage interest rates determined?
APR 25, 2023
A:

Mortgage rates fluctuate from day to day, depending on a number of factors related to the economy and to choices made by investors. While some mortgage money comes from deposits held by banks and credit unions, most of the funds for borrowers come from investors in capital markets.

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