A Jumbo loan, also known as a non-conforming loan, is a mortgage that exceeds the maximum loan limits set by the Federal Housing Finance Agency (FHFA).
A jumbo loan is a type of mortgage that exceeds the maximum loan limits set by the FHFA and is typically used to finance luxury properties or homes in high-cost areas. Jumbo loans may require a higher down payment, a stronger financial profile, and may come with higher interest rates and stricter lending requirements compared to conventional mortgages. There are several types of jumbo loan programs available, including fixed-rate mortgages, ARMs, and interest-only mortgages, and borrowers should carefully consider their financial situation and goals before applying.
Benefits
Features and Benefits of Jumbo Loans:
Multiple Options for Borrowers
Various Interest Rate Options
Suitable for Luxury Properties
Eligibility Criteria
Minimum credit score requirement (usually around 680 or higher).
Above average cash reserves (6-12 months of mortgage payments)