Is your dream home above $453,100? A jumbo loan might be a good fit for you. Find out below if this is an option for the dream home you are looking for.
A Jumbo Loan is a form of home financing that exceeds the “conforming loan” limits set by the Federal Housing Finance Agency. This type of loan was designed to finance “luxury” properties and homes in highly competitive marketings. Because of this, they come with unique underwriting requirements and tax implications.
This answer varies by the state and even county. the FHFA sets the conforming loan size for areas on an annual basis. But, the 2017 maximum limit for single family homes was $453,100 and is the max in a vast majority of the US.
This type of loan has more stringent requirements, that typically are as follows:
Most likely. Although, in recent years the gap has been closing significantly. Loan rates are usually .5% to 1.5%, but there have been cases where the rate is lower. It depends on many factors.
Down payment requirements on jumbo loans have gone down in recent years. Today, they can be as low as 10-15%
Yes! There is another option for homes over the conforming loan limit, up to $679,650 called a high balance loan. The main differences being:
Click HERE to find out more about the High Balance Loan.
Think a jumbo loan might be a good solution for you? Let’s find out!