Jumbo loans exceed conforming loan limits and cannot be purchased by Fannie Mae or Freddie Mac, so lenders keep them in their own portfolios or sell them to private investors. This means lenders take on more risk, resulting in stricter qualification standards. You'll need excellent credit, significant assets, and thorough documentation of income. The extra scrutiny ensures you can comfortably afford the higher loan amount. Many jumbo borrowers are high-income professionals, business owners, or real estate investors purchasing luxury properties or homes in expensive markets.