Jumbo Loan

A mortgage that exceeds the conforming loan limits set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. These loans typically have higher interest rates and require a higher credit score and larger down payment than conforming loans.

What Is A Jumbo Loan?

Jumbo loans are mortgage loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac (the two government-sponsored enterprises that buy and securitize mortgages). These limits vary by location and are typically higher in areas with higher housing prices. Jumbo loans are generally used to finance higher-priced homes or luxury properties. They usually require a higher down payment (10% or more) and have stricter credit and income requirements compared to conventional loans. Jumbo loans also tend to have higher interest rates. If you are looking to purchase a high-priced home or a property that exceeds the conforming loan limits in your area, a jumbo loan may be the right choice for you.

The Benefits of Jumbo Loans

  • Higher loan amount than traditional mortgage
  • Higher loan-to-value ratio
  • Lower interest rate
  • More flexible credit requirements

Who Should Consider a Jumbo Loan?

  • Homebuyers with high income and strong credit
  • Borrowers looking to purchase high-priced homes
  • Borrowers who cannot use a conventional mortgage for their financing

Eligibility Guide

  • Have a credit score of 700 or higher
  • Have a debt-to-income ratio of 45% or lower
  • Have a down payment of at least 10%
  • Have a stable employment history
  • Have a solid financial history, including no bankruptcies or foreclosures in the past 7 years

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