Jumbo Loans

If you’re in the market for a new home and looking to borrow a large amount of money, you may qualify for a jumbo loan. Jumbo loans are a type of mortgage that exceed the limits set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that back most home loans in the United States. In this post, we’ll take a closer look at what jumbo loans are, how they work, and who might benefit from them.

A jumbo loan is a type of mortgage that exceeds the limits set by Fannie Mae and Freddie Mac. In most parts of the United States, the maximum conforming loan limit for a single-family home is $726,200 in 2023. Anything above that is considered a jumbo loan. Jumbo loans are typically used to finance high-end properties, such as luxury homes or properties in expensive markets.

Jumbo loans can be viewed as riskier than conforming loans because they exceed the limits set by Fannie Mae and Freddie Mac. As a result, they often come with stricter requirements, and require a good credit score, a low debt-to-income ratio, and a large down payment to qualify for a jumbo loan.

Jumbo loans are not for everyone, but they can be a good option for borrowers who need to finance a high-end property that exceeds the conforming loan limits. They can also be a good option for borrowers who have a high net worth and need to borrow a large amount of money. Additionally, jumbo loans can be a good option for borrowers who are looking for more flexibility in their loan terms, such as interest-only payments or adjustable-rate mortgages.

If you are looking to purchase a home that falls into the jumbo loan category, Lendscout is here to help walk you through the different options and make sure you get the best rate for your needs.