If you're shopping for a home over a certain price, you may need to get a jumbo loan. Jumbo loans cover larger loan balances and often have stricter standards, including requiring a higher credit score and a bigger down payment. But what is the amount over which you'll need a jumbo loan? Well, it changes. At the end of 2022, it was $647,200. Any loan balance below that was considered conforming and balances above that required a jumbo loan. But the Federal Housing Finance Agency – the agency that sets conforming loan limits – recently announced the limits were rising, including to over $1 million in some high-cost markets. The change, according to one analysis, means more than two million homes across the country can now be purchased using a more accessible financing option, potentially opening up additional inventory for some high-end home shoppers.
