What is a Jumbo Loan?
The term jumbo pertains to a loan amount that exceeds the Fannie Mae conforming and high balance loan limits. As of January 1, 2019, the conforming loan limits have increased to $484,350 and the high balance loan limits up to $726,525 in high-cost areas. Jumbo loans cover residential purchases and refinances for single family, Co-Op and Condo loans. Whether you are looking for a fixed or an adjustable rate program, GuardHill Financial is well equipped to professionally assist you with your conforming, high balance, and jumbo loans.
What Makes a Jumbo Loan Different?
A jumbo loan is larger in size and inherently riskier to lenders. They often require a higher down payment and higher credit score than conforming loans.
At GuardHill We Are Jumbo Loan Experts
Found your ultimate dream home? We specialize in financing jumbo mortgages and we will work with you to offer the best mortgage program to meet your financial needs.
GuardHill has specialized in mortgage services in the Tri-State area since 1992. Apply for a jumbo loan today with GuardHill.
Pros of a Jumbo Mortgage
- Not restricted by limitations of Fannie Mae/Freddie Mac guidelines
- Larger loan amount for a larger amount of financing
- Potentially lower rates than standard conforming mortgages
- Jumbo loans, unlike conforming loans, typically do not require private mortgage insurance at any level.
Cons of a Jumbo Mortgage
- Usually more difficult to qualify for – Jumbo mortgages have increased risk associated with them, so lenders have stricter guidelines when qualifying applicants. To obtain a Jumbo loan, you will often need a higher FICO score than usual, a lower DTI, and higher than usual reserves and assets.
- The property you are buying may need a second appraisal, which may cost you a fee
- Potentially higher down payment
- May have higher interest rates than standard conforming mortgages