Talk to an Agent: 888-242-4235
Jumbo Loans
What Is a Jumbo Loan?
Fannie Mae and Freddie Mac buy conforming loans. Conforming loans have loan limits are set by the Federal Housing Finance Agency (FHFA). Loan amounts over the set limits are known as Jumbo Loans. Jumbo loans are not eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements.
What loan amount is considered Jumbo?
The value of a jumbo loan varies by county. The FHFA sets the conforming loan limits for different areas on an annual basis. The limit for 2022 was set at $647,200 for most of the country. For counties that have higher home values, the baseline limit is set at $970,800. Once the loan limit goes above the loan limit it is considered a Jumbo loan.
Who benefits from a Jumbo loan?
Anyone who wants to purchase a home with a loan amount above the FHFA limits.
What is the minimum down payment?
Typically, the lowest down payment allowed is 10%
What are some Jumbo loan requirements?
- Higher income, generally jumbo loans required a lower debt to income ratio.
- Lenders like to see good credit scores usually 680 and above.
- Depending on loan amount the lender may require 2 appraisals.
- As much as 18 months reserves may be required.
Can I get cash-out?
Yes, with a loan amount up to 80% of your home’s value.
What kind of loan programs are available?
Jumbo loans have loan terms that are fixed and 5, 7 and 10 year ARM’s.