Securing Funding on a Custom Home: What is a Jumbo Loan?
Put simply, a jumbo loan is a mortgage loan that is higher than conventional loan limits.
Every year, the two largest agencies, Fannie Mae (FNMA) and Freddie Mac (FHLMC) set a limit on the amount they will pay to purchase home loans. The current limit for a conventional loan on a single-family home, in all but two states, is $417,000. Jumbo loans make it possible to purchase the high end home of your choice when the amount exceeds the limit.
Jumbo Mortgage Loan Requirements
The requirements for a jumbo loan vary, but they are more stringent than a conventional loan. The majority of lenders will require:
A credit score of 600 or higher.
A down payment of anywhere between 5 to 15 percent.
Put simply, a jumbo loan is a mortgage loan that is higher than conventional loan limits.
Every year, the two largest agencies, Fannie Mae (FNMA) and Freddie Mac (FHLMC) set a limit on the amount they will pay to purchase home loans. The current limit for a conventional loan on a single-family home, in all but two states, is $417,000. Jumbo loans make it possible to purchase the high end home of your choice when the amount exceeds the limit.
Jumbo Mortgage Loan Requirements
The requirements for a jumbo loan vary, but they are more stringent than a conventional loan. The majority of lenders will require:
A credit score of 600 or higher.
A down payment of anywhere between 5 to 15 percent.