JUMBO LOANS
What is a Jumbo loan, and how does it differ from conventional loans?
A Jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are used to finance higher-priced properties. Unlike conventional loans, Jumbo loans typically have stricter credit and income requirements.
What is the minimum down payment required for a Jumbo loan?
Jumbo loans often require a larger down payment, typically around 20% of the home's purchase price. However, some lenders may offer options with a lower down payment.
Are Jumbo loans available in all areas, or are there specific regions where they apply?
Jumbo loan limits vary by location and are influenced by the median home prices in the area. You can check with lenders to find out the Jumbo loan limits in your desired location.
How can I qualify for a Jumbo loan with competitive interest rates?
To secure favorable interest rates on a Jumbo loan, you'll typically need a strong credit score, a stable income, and a low debt-to-income ratio.
What is the loan amount threshold for Jumbo loans?
For single-family homes, loans above $726,200 exceed the baseline conforming loan limit and are considered Jumbo loans.
Can Jumbo loans only be used to finance primary residences?
No, Jumbo loans can be used for primary residences, second homes, and investment properties, making them versatile options for various real estate needs.