Jumbo home loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo home loans are typically higher than conforming home loans. Jumbo home loans are typically used to buy more expensive homes and high-end custom construction homes. Typically jumbo home loans require a higher down payment than traditional home loans.
The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2020 maximum conforming loan limit for one-unit properties will be $548,250, an increase from $453,100 in 2018.
Taking on a jumbo home loan is a big decision. If you’re buying a home and considering a jumbo home loan, be smart and do your research to learn as much as you can about the jumbo home loans. Not all jumbo home loans are alike. In fact, they can vary significantly depending on the amount and the lender.
Taking out a jumbo loan also means you are signing on for a larger amount of debt. SO make sure you do your homework. If you have any questions and want to know if a jumbo loan is something you should consider, call us 865-392-5450. Our home loan specialists are happy to help you make the right decision.