For a loan to be considered a "jumbo" mortgage, the loan amount must exceed conventional conforming loan limits,
which are set by two government-sponsored enterprises - Fannie Mae and Freddie Mac. These two corporations set the
limit on the maximum value of any individual mortgage they will purchase from a lender. Currently, the conforming loan
limit is $417,000 for a one-unit home - meaning, if you need to borrower half a million dollars to buy a million-dollar home,
you would need a jumbo mortgage.
It is also worth nothing that some conforming loan limits may exceed $417,000.
In some cases, there are loan products that have elevated conforming loan limits, which give borrowers
the ability to obtain mortgages exceeding the normal $417,000. The availability of these loans varies by county.
The U.S. Housing Department has a useful tool on their website where you can find limits in each state/county.
For further information on jumbo loans, please contact us.
Our mortgage professionals will review your loan options and help you figure out whether a jumbo loan is right for you.