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What are they?
A loan that does not conform to the guidelines
established by Fannie Mae or Freddie Mac or exceeds the
conventional loan limit is called a Jumbo mortgage loan.
In most states, home loans that exceed $333,700 to
$1,000,000 are considered Jumbo Mortgages. Jumbo
Mortgages carry slightly higher interest rates than
conventional home loans.
A loan amount over $1 Million is classified as a "super
jumbo" loan. Most lenders do not offer residential
mortgage financing for Super Jumbo loans, and some
lenders only do Super Jumbo loans. As with a jumbo loan,
documentation requirements, interest rates, and review
processes are generally different and more demanding on
super jumbo loans than "conforming" loans, due to the
amount of money involved.
Why do you need to know this?
Once you know your loan is classified as Jumbo or Super
Jumbo, you need to ask different questions. From the
first conversation you have with your lender, you need
to make certain that he or she knows you need a jumbo or
super jumbo loan. You need to make certain that your
lender has the proper resources to offer you competitive
jumbo and super jumbo financing.
Do you want a lender who is inexperienced in working
with jumbo and super jumbo loans? Do you want to risk
your time and investment? We can provide a variety of
products for many different classifications of borrower.
Jumbo
Mortgage Loan Limits
Jumbo loan limits are loan amounts
that are above the loan amounts listed below.
|
48 States |
Hawaii / Alaska |
|
Single Family |
$322,700 |
$484,050 |
|
2 Units |
$413,100 |
$619,650 |
|
3 Units |
$499,300 |
$748,950 |
|
4 Units |
$620,500 |
$930,750 |
Once you know your loan is classified as Jumbo or
Super Jumbo, you need to ask different questions.
From the first conversation you have with your
lender, you need to make certain that he or she
knows you need a jumbo or super jumbo loan. You
need to be prepared for having at least two
appraisals on the property, and potentially
providing more documentation than other loan
programs. You need to make certain that your lender
has the proper resources to offer you competitive
jumbo and super jumbo financing.
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