Jumbo loans are used for properties that cost more than $647,200. These properties are too expensive for a conforming loan and cannot be guaranteed by Fannie Mae and Freddie Mac, so the lender is not protected from loss if a borrower defaults on the loan. 

These loans are generally considered "riskier" and may come with certain requirements, like a higher credit score, proof of an extra cash reserve, and additional documentation. Jumbo loans may offer either a fixed interest rate or an adjustable interest rate, and can also require a second home appraisal.