What is a jumbo loan?

Answer

In most areas of the country, a jumbo loan is a mortgage greater than conforming loan limits – those loans that conform to Fannie Mae and Freddie Mac guidelines for one unit properties. In most U.S. counties, a jumbo loan exceeds $417,000.

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Larger down payment

In 39 high-cost counties around the nation, conforming loan limits are higher, up to $625,500 in areas with the highest housing costs. In certain Hawaiian counties, conforming loan limits are even greater.

Applicants for a jumbo mortgage must put down larger down payments, and have very good credit scores and between six to 12 months of reserves. Other requirements depend on the lender.

Read more about a non-conforming mortgage.

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