What is a Jumbo Loan?
A Jumbo loan is a home loan for those who have higher lending needs than conforming conventional loan types can meet. A Jumbo loan is a non-conforming loan, which means that the amount you want to borrow is over $510,400 (or $765,600 in high-cost areas) as determined by the Federal Housing Finance Agency (FHFA).
Because a Jumbo loan is not eligible for purchase by Fannie Mae or Freddie Mac, these loans must be sold on the secondary market. This means Jumbo loans can have stricter credit score guidelines and may require larger down payments. However, there are many Jumbo home loans that do not require large down payments and may not require mortgage insurance (MI). Jumbo loans are typically available with either a fixed interest rate or an adjustable rate.
Who is a Jumbo Loan right for?
If you’re looking to upsize or just want a larger home and have the financial means, a Jumbo loan may be right for you. Conforming conventional loans only let you borrow up to a certain amount, which won’t cover your mortgage for homes in a higher price range. If you aren’t interested in breaking the amount needed to cover this mortgage into two loans, which can be a headache and a plethora of paperwork, look into a Jumbo loan.
Jumbo Home Loan Benefits
- Ability to purchase a home with a bigger price tag
- Borrow the full amount of money that you need instead of breaking it into two different loans or putting more money down
- Buy a dream home in a highly desirable real estate market
Are you ready for an upgrade to the larger home of your dreams? Lennar Mortgage has you covered. We can guide you down the path to homeownership as well as help you see if you qualify for a Jumbo loan.