A Jumbo loan is typically one that exceeds the maximum loan available for single-family properties. This is referred to as the conforming loan amount. That amount is currently set at $548,250 for one-unit properties. However, higher loan amounts are available under conforming loans for 2- to 4-unit properties, and those located in areas designated as high cost.
Another distinguishing factor of Jumbo loans is that they're issued by individual banks and other lenders. By contrast, conventional loans are funded by Fannie Mae and Freddie Mac, while FHA and VA loans are funded by Ginnie Mae (Government National Mortgage Association).