Dream homes can mean big loans, and a Jumbo home loan can make those dream homes become a reality.
When the home of your dreams is in an extremely desirable location, your growing family demands a larger home or you desire luxury amenities that rival most five-star resorts, a Jumbo loan may be right for you.
Jumbo loans are also considered non-conforming loans because they exceed the conforming loan limit of $484,350. Interest rates on Jumbo loans tend to be higher, due to the increased risk associated with larger loan amounts, and because the loans cannot be sold to Freddie Mac or Fannie Mae on the secondary market. Some borrowers may choose to pay a larger down payment to get their loan size below the conforming limit. Other borrowers are comfortable paying a higher monthly payment instead of putting the additional money down. For these borrowers with higher monthly income but less available down payment, a Jumbo loan is the perfect solution. Are you a veteran, active duty or surviving spouse of a veteran or service member? Did you know there is a way to obtain a Jumbo VA loan with reduced down payments when compared to a traditional Jumbo loan? Learn more here.
What You Need to Know
- Jumbo loans are available in fixed and adjustable rates
- Loan terms from 15 to 30 years
- Tend to have higher down payment and cash reserve requirements
- Underwriting guidelines can be stricter compared to conventional loans
- Jumbo loans can exceed the conventional loan limit up to a maximum of $2 million
Our home loan advisors at Scissortail Financial Home Loans will help you determine if your loan amount falls outside of the conventional limits. While piggyback second mortgages and larger down payments could bring your loan amount down to conventional limits, you may choose to utilize a Jumbo loan instead. We will help you understand your options so you can decide which loan will fit your needs.