What is a jumbo home loan?
A jumbo home loan is a mortgage in which the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency. The conforming loan limit amount changes each year, and in some areas of the country, the conforming loan limit is higher to compensate for a higher cost of living.
Because jumbo home loans cannot be guaranteed by Fannie Mae and Freddie Mac, both regulated by the Federal Housing Finance Agency, they are considered riskier to lenders and usually have higher interest rates than conforming loans. This means a jumbo home loan may be harder to qualify for. Some lenders will require larger down payments and a lower debt-to-income ratio compared to applicants of conforming home loans.
Speak with a Mortgage Loan Officer to learn more about your options. Or if you’re ready to see how much you may qualify for, submit a pre-qualification request today.