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Jumbo Mortgage What are they?
A loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac or exceeds the conventional loan limit is called a Jumbo mortgage loan. In most states, home loans that exceed $322,700 to $1,000,000 are considered Jumbo Mortgages. Jumbo Mortgages carry slightly higher interest rates than conventional home loans.
A loan amount over $1 Million is classified as a "super jumbo" loan. Most lenders do not offer residential mortgage financing for Super Jumbo loans, and some lenders only do Super Jumbo loans. As with a jumbo loan, documentation requirements, interest rates, and review processes are generally different and more demanding on super jumbo loans than "conforming" loans, due to the amount of money involved.
Why do you need to know this?
Once you know your loan is classified as Jumbo or Super Jumbo, you need to ask different questions. From the first conversation you have with your lender, you need to make certain that he or she knows you need a jumbo or super jumbo loan. You need to make certain that your lender has the proper resources to offer you competitive jumbo and super jumbo financing.
Do you want a lender who is inexperienced in working with jumbo and super jumbo loans? Do you want to risk your time and investment? MortgageLeap.com will connect you with the right jumbo lenders who can provide a variety of products for many different classifications of borrower.
Jumbo Loan Limits
Jumbo loan limits are loan amounts that are above the loan amounts listed below.
48 States
| Hawaii / Alaska | | Single Family | $322,700
| $484,050
| | 2 Units | $413,100
| $619,650
| | 3 Units | $499,300
| $748,950
| | 4 Units | $620,500
| $930,750
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Once you know your loan is classified as Jumbo or Super Jumbo, you need to ask different questions. From the first conversation you have with your lender, you need to make certain that he or she knows you need a jumbo or super jumbo loan. You need to be prepared for having at least two appraisals on the property, and potentially providing more documentation than other loan programs. You need to make certain that your lender has the proper resources to offer you competitive jumbo and super jumbo financing.
Do you want a lender who is inexperienced in working with jumbo and super jumbo loans? Do you want to risk your time and investment? We will connect you with the right jumbo lenders who can provide a variety of products for many different classifications of borrower. |
