Another name for a jumbo mortgage is a "non-conforming" mortgage, meaning it does not “conform” to the guidelines of Fannie Mae and Freddie Mac who only buy mortgages meeting their guidelines for down payment, credit score, post-closing reserves, and loan amount. That means Jumbo loans are sold on the non-government-backed "secondary market" and typically have marginally higher rates than a conforming loan as the are considered slightly higher risk.
In 2017, the limit for a one-unit home is $424,100 nationwide, with exceptions as high as $636,150 in certain high-value markets. Jumbo loans allow you to obtain a loan for more than the conforming loan limit in your area. In most of the country, that means you’ll use a jumbo mortgage if your loan amount is greater than $417,000.
If you can afford high-value real estate but don’t have enough saved up to bring a loan down to the conforming limit a jumbo mortgage is likely the right product to help you leverage your strong financial situation to purchase the home of your dreams.Jumbo mortgages have the same overall qualifying process as conforming loans where we evaluate your credit score, down payment, debt-to-income ratio, and money left over after closing. For your risk-free Jumbo home loan quote, contact us today.