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What is a Jumbo Loan?
A jumbo loan or jumbo mortgage is simply any mortgage where the loan amount exceeds the industry standard lending limit.
In today’s market, most homes have a loan limit of $417,000; however the 2008 economic stimulus package provided a limit increase to $729,000 in certain areas.
Jumbo Loan Qualifications.
In order to qualify for a jumbo loan, lenders generally require a stronger credit score from the borrower, usually at least a 660.
In addition, jumbo loan lenders require three months of reserves (3 times the monthly mortgage amount) for a jumbo loan.
Also, because jumbo mortgages have a higher principal loan amount than their traditional counterparts, the interest rate will be higher than for a conventional loan. Even so, interest rates for jumbo loans are near their all time low!
Are There Different Jumbo Loan Types?
Yes! Jumbo loans apply to many different varieties of loans, like VA loans, FHA loans, and conventional mortgages. That’s right… you can get into a home with a federally insured jumbo loan!
Other than the above requirements, jumbo loans are no different than their “conventional” counterparts.
I Need a Jumbo Loan – How do I get Started?
The great news is that jumbo loan interest rates are near their historic lows! That makes now the perfect time to apply!
Get access to CREFCO’s low rates by filling out our fast, free, secure application or by calling 866-854-4242!
Did You Know?
USDA loans have no corresponding jumbo loan. That’s because there is NO lending limit for USDA rural development home loans. To learn more and find out if you are eligible… click here.
Conventional or Jumbo?
In some places a jumbo loan is required for any mortgage over $417,000. In other places, that number shoots up to $729,000. To determine the conventional lending limit in your area call 866-854-4242!