Jumbo construction loans are financial products designed for building new homes that exceed conforming loan limits. These loans can be categorized into two types: standalone construction loans, which fund the building phase, and construction-to-permanent loans, which convert to mortgages post-construction. The conforming loan limit in 2025 stands at $806,500 for one-unit properties, while high-cost areas may see limits up to $1,209,750. Borrowers must meet credit, income, and debt-to-income ratio criteria during the application process.
A jumbo construction loan is unique compared to traditional construction loans because it is a loan that sits above the conforming loan limit.
The conforming loan limit for mortgages that Fannie Mae and Freddie Mac can acquire in 2025 is $806,500 for one-unit properties.
Construction loans fund building residential homes from land purchase to the finished product, generally either as a standalone construction loan or a construction-to-permanent loan.
In high-cost areas, such as Alaska or Hawaii, the limit is $1,209,750 for one-unit properties.
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