Sept. 20, 2017
What is a jumbo mortgage loan?
Jumbo mortgage or a super non-conforming mortgage is a home loan with an amount exceeding conforming loan limits set by the two government-sponsored enterprises that purchase loans from lenders, including Fannie Mae and Freddie Mac.
In order to fully understand Jumbo Mortgages or Non-conforming mortgages, one should first take a look at Conforming Loans. Home loans with amounts under the limits set by Fannie Mae and Freddie Mac are called conforming loans because they conform to the set standards.
In most states of the country, the limit on conforming loans for single-unit houses is $417,000. However, there are some high-cost states where real estate is valued higher, such as California, New Jersey, Alaska, etc. Jumbo mortgages are designed to provide financial assistance to people who want to buy a home in these high-cost states. The Jumbo mortgage limits vary from state to state. For example, in Georgia, a loan amount above $625,500 is considered to be a Jumbo loan. While in California, the limit varies from county to county.
Jumbo mortgage loans are something that falls outside of our typical loan types.
This loan, as implied by its name, is larger than the other loan types that you will be able to find out there.
We’re going to take a look into exactly what jumbo mortgage loans are capable of and where you would want to use them.
If you want some more information about the loan, we’ll also have a question and an answer, a pro and con list, and an article even that dives into a little bit of a deeper discussion about the loan limits associated with these loans.
We want to make sure that you understand everything that’s going on here and that you feel comfortable moving forward with your plan for a loan.
So let’s get into it.