how does a jumbo loan work

Best answer


A jumbo loan is a mortgage thatexceeds the conforming loan limit. If you borrow any more than the conforming loan limit, you are taking out a jumbo (or nonconforming) loan. Nonconforming loans do not comply with published guidelines from government agencies and enterprises such as Fannie Mae, Freddie Mac and the FHA.

People also ask


  • What is a jumbo loan on a house?

  • A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $647,200 in most counties, as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan.

  • Why are lenders becoming more comfortable with jumbo loans?

  • Because of this demand, lenders are becoming more comfortable offering jumbo mortgages. Rocket Mortgage currently offers the Jumbo Smart loan, which offers loans up to $2.5 million, doesn鈥檛 charge PMI and seeks to streamline the amount of paperwork that lenders have traditionally required for amounts above the conforming loan limits.

  • What is a jumbo loan specialty?

  • Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit. What Is a Jumbo Loan? A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA).

  • What is a jumbo loan from AIG?

  • A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac.

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