In the United States, a Jumbo Loans Money Street Mortgage is a mortgage loan that may have high credit
quality, but is in an amount above conventional conforming loan limits.This standard is set
by the two government-sponsored enterprises, Fannie Mae and Freddie Mac, and sets the limit
on the maximum value of any individual mortgage they will purchase from a lender.
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of U.S.
residential mortgages from banks and other lenders, allowing them to free up liquidity to lend more mortgages. When FNMA and FHLMC limits don’t cover the full loan amount, the loan is referred to as a “Jumbo mortgage”.
In most areas throughout the United States, loan amounts above $417,000 are considered Jumbo loans.
Traditionally, the interest rates on jumbo mortgages are higher than for conforming mortgages.