A jumbo loan is a type of financing that exceeds the limits set by Fannie Mae and Freddie Mac, which are government-sponsored enterprises that purchase mortgages from lenders in order to provide liquidity to the housing market. These loans typically range between $484,350 and $726,525 for a single family residence, depending on where the property is located. Due to their larger size, jumbo loans often require more stringent underwriting standards and higher down payments than conventional mortgages.