Jumbo Loans
A Jumbo Loan is a loan amount that is over the conventional limit. A mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO). Depending on where you live in the country, a house that costs more than $417,000 is generally considered a Jumbo Loan.
When compared to a Conforming Loan, Jumbo Loan products can offer a wider range of flexibility when it comes to loan program and what kind of payment a Jumbo Loan borrower wants. Jumbo Loans programs can either be fixed or adjustable and may have an interest-only option available.
Jumbo loans are often securitized by institutions other than Fannie Mae or Freddie Mac. These securities carry more credit risk than those issued by Fannie Mae or Freddie Mac, and therefore, Jumbo loans are not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. Because such a large amount is being borrowed lenders often charge slightly higher interest rates for Jumbo Loans. However, in recent years the spread in interest rates between jumbo and conventional mortgages has been reduced.
Getting Approved
In today’s market, getting approved for Jumbo Loans can be more challenging than it was only a few years ago. Jumbo Loan limits differ between states, and each county in each state. Jumbo Loan programs change every day, so it is important to speak with a Jumbo Loan expert who understands, and can accurately assess your current financial situation, and help you find the best Jumbo Loan program available.
For more information on Jumbo Loans, please feel free to contact us by clicking here, email us at amdirect@alliedmg.com or call: (800)862.5543.
