What is the difference between conforming and jumbo?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Conforming loans stay at or under the agency limit ($806,500 in most Florida counties for 2025) and follow Fannie and Freddie rules, with easier qualification. Jumbo loans exceed that limit and carry stricter credit, down payment, and reserve requirements.
If your price sits near the line, staying conforming can simplify approval. We'll show whether a slightly larger down payment to stay conforming beats going jumbo.
The dividing line
The difference is loan size. A conforming loan stays within the limit Fannie Mae and Freddie Mac will buy, above $800,000 in most 2026 markets. A jumbo loan exceeds that limit.
Because jumbo loans are not backed by those agencies, they follow stricter private guidelines.
Cost and qualifying
Conforming loans usually have lower rates, smaller down payments, and easier approval. Jumbo loans ask for higher scores, more down, and more reserves in exchange for larger amounts.
Staying just under the limit can save money. Reach out and we will tell you which side of the line your purchase falls on.