Jumbo Loans

 A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The Federal Housing Finance Agency (FHFA) sets the maximum amount for a conforming loan, which is $766,550 in most counties. When a home’s price exceeds this limit, a jumbo loan is required.  

Key Features of Jumbo Loans:

• Non-Conforming: These loans are also known as non-conforming conventional mortgages because they exceed the conforming loan limits.
• Higher Risk for Lenders: Jumbo loans are considered riskier for lenders because they can't be guaranteed by Fannie Mae or Freddie Mac, which means lenders aren't protected from losses if a borrower defaults.
• Interest Rates and Terms: Jumbo loans are typically available with either a fixed interest rate or an adjustable rate, offering various terms to suit different financial situations.

Understanding these aspects of jumbo loans can help you navigate the financing options for high-value properties.