Jumbo Mortgages

Jumbo Mortgages
2 min read

In this guide on jumbo mortgages, we will cover what you need to know about jumbo mortgages. When investing in a property, one of the most crucial aspects you have to figure out is identifying how you will finance the investment. Since most people use mortgages, you will have to find the type of mortgage that suits your needs perfectly. You can have a jumbo loan on any type of primary home, second home, and investment property. Borrowers can get financing on single-family homes, hobby farms, condominiums, condotel financing, now-warrantable condos, modular homes, duplexes, and two to four unit multi-family homes.

What Is A Jumbo Home Mortgage?
A jumbo mortgage, or jumbo loan, is a type of financing that goes beyond the conforming loan limits set by the FHFA (Federal Housing Finance Agency). These loans are designed to finance high-end homes and properties in competitive markets. Since they don’t conform to the limits subjected to other conventional mortgages, they come with unique tax implications and underwriting requirements. Also, borrowers seeking this mortgage are subjected to greater scrutiny, and the borrowing costs are a bit higher. However, more and more borrowers nevertheless go with jumbo mortgages to purchase a higher-end home. 

  • What Is The Difference Between Conventional versus Jumbo Mortgages
    As we’ve already mentioned, the critical difference is that a jumbo mortgage exceeds the FHFA limits for conventional loans. This means that the jumbo mortgage will cover so much more than the traditional loan. As for the conventional loan, they meet all the limit requirements by Fannie Mae and Freddie Mac, thereby considered conforming.  Jumbo mortgages are commonly referred to as non-conforming loans because they do not conform to Fannie Mae and/or Freddie Mac mortgage guidelines. Any loan size greater than the conforming loan limit is considered a jumbo loan,
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