What is a Jumbo Loan?
Jumbo loans have a loan amount that exceeds the Fannie Mae conforming and high balance loan limits. Jumbo loans cover residential purchases and refinances for single family, co-op and condo loans.
Jumbo vs. Conforming Loan
A jumbo loan is a loan that is larger in size compared to a conforming loan, and inherently, is riskier to mortgage lenders. A jumbo mortgage often requires a higher down payment and a higher credit score than conforming loans. A conforming loan follows the guidelines set by Fannie Mae and Freddie Mac.
>Helpful Resource: Use our monthly mortgage payment calculator to find out what you can afford!
Jumbo Mortgage Limits vs. Conforming Mortgage Limits
As of January 1, 2019, the conforming loan limits have increased to $484,350 and the high balance loam limits up to $726,525 in high-cost areas. Thus, jumbo loans have a loan amount greater than $726,525. A high balance loan amount is between $484,250 and $726,525. Whether you are looking for a fixed-rate mortgage or an adjustable rate mortgage, GuardHill Financial is well equipped to professionally assist you with your conforming, high balance, and jumbo loans.
Jumbo Loan Pros
- Not restricted by limitations of Fannie Mae/Freddie Mac guidelines
- Larger loan amount for a larger mortgage
- Potentially lower interest rates than standard conforming mortgages
- Jumbo loans, unlike conforming loans, typically do not require private mortgage insurance at any level.
Jumbo Loan Cons
- Usually more difficult to qualify for – Jumbo loans have an increased risk associated with them, so jumbo mortgage 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 require a second appraisal, which may cost you a small fee
- Potentially higher down payment
We are jumbo mortgage experts. Get in touch with one of our seasoned loan officers to discuss your financial situation and see if a jumbo mortgage is right for you.
Well-Versed in Jumbo Loans Since 1992
Found your ultimate dream home? We have specialized in financing jumbo loans since 1992, and we will work diligently with you to offer the best jumbo mortgage that meets your financial needs. We’re here to help you understand the jumbo mortgage process and to make it a painless and seamless experience!
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