Jumbo Loans

A jumbo loan, also known as a non-conforming loan, is a type of mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Conforming loan limits are the maximum loan amount that government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee.

Jumbo loans are typically used by high-income borrowers who need to finance the purchase of a high-priced or luxury home. These loans typically have higher interest rates and stricter underwriting standards than conforming loans.

Jumbo Loan Features:

• Higher loan amounts: Jumbo loans allow borrowers to borrow larger amounts than conforming loans, which can be helpful for financing the purchase of a high-priced or luxury home.

• Higher credit score requirements: Jumbo loans typically require borrowers to have higher credit scores than conforming loans.

• Higher down payment requirements: Jumbo loans typically require borrowers to make a higher down payment than conforming loans.

• Higher interest rates: Jumbo loans typically come with higher interest rates than conforming loans.

Jumbo loans offer borrowers the ability to borrow larger amounts than conforming loans, but they also come with higher credit score requirements, higher down payment requirements, and higher interest rates. These loans can be a good option for high-income borrowers who need to finance the purchase of a high-priced or luxury home.