The conforming loan limit explained: where the line is and what crossing it means
What the line is
The line, briefly
Fannie Mae and Freddie Mac buy mortgages that meet their rules, including a maximum loan size. That maximum is the conforming loan limit. Loans at or under it can be sold to the agencies; loans above it cannot, so lenders either keep them or sell them to private investors under separate standards.
Last reviewed against the primary sources listed below.
Why it matters to you
- Different rules for reserves and documentation.
- Different appraisal requirements at some lenders.
- Pricing set by each lender rather than agency grids.
Questions about the line
Is a jumbo loan riskier for the borrower?
Not inherently; it is a different set of rules. Compare Loan Estimates on the full terms.