A loan above $227,150(as of 1/1/98). These limits are set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

A mortgage neither insured by the FHA nor guaranteed by the VA.

A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans ($239,250 as of 1/1/01), they are generous enough to handle moderately-priced homes almost anywhere in the country.