A super jumbo mortgage usually consists of financing greater than $1,000,000 for a purchase or refinance transaction, reports Mortgage 101. However, since super jumbo mortgages are not backed by any government agency, the loan limits vary by lender and region.
Jumbo mortgages are any loan amount greater than $417,000, as of 2015. The government sponsored agencies Fannie Mae and Freddie Mac set the loan limits. Fannie and Freddie buy mortgages from banks and lenders and securitize the loans for investment purposes. Therefore, the two agencies set the guidelines for which banks and lenders approve financing. Any loan amount greater than $417,000 for a single-family property is known as a nonconforming loan and subject to higher interest rates,
Jumbo mortgages are any loan amount greater than $417,000, as of 2015. The government sponsored agencies Fannie Mae and Freddie Mac set the loan limits. Fannie and Freddie buy mortgages from banks and lenders and securitize the loans for investment purposes. Therefore, the two agencies set the guidelines for which banks and lenders approve financing. Any loan amount greater than $417,000 for a single-family property is known as a nonconforming loan and subject to higher interest rates,