Many homes fall within the conforming loan limits set by Fannie Mae and Freddie Mac, which means that they can be purchased using conventional loans. But many homes exceed these limits, which means that they can only be purchased using Jumbo Loans. Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes, and usually require a higher down payment than traditional loans.