Conventional
loans have certain limitations which allow them to be considered "Conforming"
mortgage loans. One of these limitations is a maximum loan amount set periodically
by FNMA (Fannie Mae) and FHLMC (Freddie Mac). Obviously, many people qualify
for loans in excess of this amount. A jumbo loan is how these borrowers are
accommodated. In general, the same types of qualifications as for conventional
loans must be met, but the loan sizes are larger. Most loan types are available
in jumbo amounts. Typically a small premium is charged in rate due to the size
of the loan. 
