Jumbo loans, also known as jumbo mortgages, are a form of home financing for whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency ($625,000 as of January 2022). As a result, unlike conventional mortgages, it is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo loans come with unique underwriting and documentation requirements. Jumbo loans often require longer to process and underwrite.