Jumbo

Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as "jumbo" loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a slightly higher interest rate than conforming loans, but these loans are remarkably well priced now, just over conforming rates, and much lower than they were in 2008.

Jumbo loans are not as difficult to qualify for as people think. The Debt-to-Income ratio is typically 36%, but can be higher for well qualified buyers.