For Higher-Priced Homes

Conventional and government-backed loans have a maximum amount they'll cover, set by county and updated each year. When a home costs more than that, you need a jumbo loan to cover the difference.

Because jumbo loans aren't backed by a government agency or eligible for sale to Fannie Mae or Freddie Mac, lenders take on more risk, which usually means stricter requirements: a higher credit score, a lower debt-to-income ratio, and often a larger down payment or more cash reserves.

This is exactly the kind of loan where shopping multiple lenders matters most. Jumbo guidelines and pricing vary more between lenders than almost any other loan type, since each lender sets its own risk appetite.