When a loan amount is higher than the conforming limit, it becomes a Jumbo Loan, or non-conforming loan, with slightly higher interest rates. Jumbo loans, combined with historically low mortgage rates, can bring greater flexibility for some homebuyers to purchase the house they want and make the payment they want.  The conforming loan limit is the maximum loan size eligible for purchase by either Fannie Mae or Freddie Mac, who purchase the underlying securities from mortgage originators. Those funds are then reinvested in new mortgages, and the flow-of-funds cycle continues.  The conforming loan limit, or "Jumbo Loan amount" is set every January.

If you are interested in finding out about securing a high end home without the jumbo mortgage rate, or getting your Jumbo Loan with a low (or no) down payment, talk to a mortgage expert.