This distinction refers to the loan size. Loans below the threshold are typically sold to FNMA (Fannie Mae), FHLMC (Freddie Mac), or others as ultimate investors for the loans. Loans above this threshold are sold to different investors. The rates for jumbo loans are typically a bit higher than for conforming ones, but the spread between the two varies with the economy.The cutoffs between conforming and jumbo are currently $300,700 for single family dwellings, $351,950 for two units, $425,400 for three units, and $528,700 for four units. In Alaska and Hawaii, these numbers are currently $412,500 for single family dwellings, $527,925 for two units, $638,100 for three units, and $793,050 for four units. Properties with five or more units are considered commercial properties and are handled by different lenders under different rules.