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What is a jumbo loan and is it right for You?
This guide will help you understand what a jumbo loan is and whether it鈥檚 right for your financial profile. What Is a Jumbo Loan? Another name for a jumbo mortgage is a non-conforming mortgage. This is a loan a lender makes you that doesn鈥檛 鈥渃onform鈥?to the guidelines of Fannie Mae and Freddie Mac.
What is a jumbo sized mortgage?
Jumbo-Sized Mortgage. Jumbo loans get their name from the large loan balances available. Conforming loans, which are the largest segment of loans in the U.S., are loans that meet guidelines set by GSEs.
What is a jumbo loan from Fannie Mae?
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). So, unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac.
What are the different types of jumbo loans?
Many lenders offer the same mortgage loans for a jumbo loan that they do for conforming loans such as fixed-rate loans, interest-only home loans, and adjustable rate mortgage loans. Most jumbo loan lenders have a limit on the loan amount for a home which is known as the loan-to-value (LTV) or combined-loan-to-value (CLTV) limit.