Jumbo
- A jumbo mortgage is a home loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, which are currently $729,200 in most areas.
- Jumbo loans are typically used to finance high-value properties or luxury homes that require a larger loan amount.
- Jumbo loans may require a larger down payment, typically 10% to 20% of the purchase price, although some lenders may offer lower down payment options.
- Jumbo loans can have fixed or adjustable interest rates, and terms typically range from 15 to 30 years.
- Jumbo loans are not backed by Fannie Mae or Freddie Mac and may be held by private investors or banks.
- Jumbo loans may have more flexibility in underwriting for self-employed borrowers, foreign nationals, or those with complex financial profiles.
- Jumbo loans can be used to purchase a primary residence, second home, or investment property
Requirements
Down Payment: as low as 5% of the purchase price
Terms: 15, 30 years, fixed and ARMs
Credit Score: 620 minimum
Mortgage Insurance: No
Maximum Loan Amount: $5 million
