A loan that has a principal balance exceeding the amount eligible for purchase by Fannie Mae or Freddie Mac. Jumbo loans typically carry a higher interest rate. Also called a "non-conforming loan."

Current Mortgage Loan Limits (2007-2009):

• One-unit properties: $417,000
• Two-unit properties: $533,850
• Three-unit properties: $645,300
• Four-unit properties: $801,950
• The conventional limit for second loans is $208,500.
• For properties in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the loan limits are 50 percent higher.