Jumbo Homes Loans can make high-end home purchases possible.

A jumbo home loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. If you are purchasing a very large home or just an upscale home in an expensive neighborhood, you will likely need a jumbo home mortgage.

What is a Jumbo Loan?

The maximum amount for a conforming loan is $766,550 in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $1,149,825) as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan.

These non-conforming conventional mortgages or jumbo loans are considered riskier for lenders because these loans are not guaranteed by Fannie and Freddie.  In this instance the lender is not protected from losses if you, the borrower default. Jumbo loans are  available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms.

What Type of Home Qualifies for a Jumbo?

Jumbo mortgages are available for primary residences, second or vacation homes and investment properties.   A jumbo home loan will typically have a higher interest rate, stricter underwriting rules and require a larger down payment than a standard mortgage.

Have questions? We specialize in writing Jumbo Mortgages in the California area and have been writing jumbo home loans for over 20 years. Give us a call! One of our mortgage specialists would be happy to answer all of your questions.