Jumbo Loans (also referred to as non-conforming loans) are those loans that typically exceed the maximum loan amounts established by Fannie Mae and Freddie Mac. Interest Rates for jumbo loans are often (but not always) somewhat higher than those of conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes, or homes in high cost real estate markets. Jumbo Loans generally require a larger down payment than conventional “conforming” loans. Underwriting guidelines can also tend to be more demanding than those of other loan programs.