What is a Jumbo Loan?
A Jumbo or Super Jumbo Loan is one that surpasses a certain amount, which will depend on your county. These loans will offer high-end financing that traditional loans cannot. Jumbo loans were created to provide affordable financing for certain areas that had experienced substantial home value appreciation. A Jumbo loan is sometimes called a nonconforming mortgage. This is because you do not have to follow guidelines of Fannie Mae and Freddie Mac, which are government-sponsored entities that create standards for down payment, credit score, post-closing reserves, and loan amount. Once the standards are met, conforming loans can be purchased from the lending bank by Fannie Mae and Freddie Mac in order to guarantee the loan. Whereas for Jumbo loans, lending institutions may keep the loans on their own books or sell them to other investment entities. Jumbo mortgages are available for primary residences, second homes, and investment properties, and are also available for fixed and adjustable rates.
How do I know if I need a Conventional, Jumbo or Super Jumbo loan?
Generally, a Jumbo Loan can be used if the mortgage loan amount you are looking for is above $424,100. That is the case in 93% of counties in the U.S., but if your home is in a high-cost area the limit is usually over $625,500.
Credit score requirements are usually around the same as those needed for conforming loans, but sometimes they require a higher down payment, higher interest rate, and stricter underwriting guidelines.
Any questions? Chat with us now! Our Loan Officers would love to answer any of your questions and get you pre-qualified today!
The Griffin Funding Experience
At Griffin Funding you can expect transparency and open communication, a knowledgeable team of industry experts and a customer-centric team working together to make your home buying experience effortless and exciting. We are fast and efficient, closing most of our purchase loans in 30 days or less.
Griffin Funding will offer the right loan tailored to you (VA, FHA, Conv, Jumbo and much more). Contact us for more information on your mortgage loan needs.