What is a jumbo loan?
- A loan is considered jumbo if it exceeds the conforming and conforming high-balance loan limits.
- The current conforming loan limit for a single-family home is $417,000 for all states – except Hawaii and Alaska, where it is $625,500
- In federally designated high-priced markets in the continental United States, conforming high-balance limits range from $417,001 to $625,500 and, in designated markets in Hawaii, from $625,501 to $721,050. To note, conforming high-balance loans typically have higher interest rates, stricter underwriting and larger down payment requirements than standard conforming loans, but are generally priced lower than jumbo loans. Additionally, limits may be different for multi-unit properties.
Jumbo loan considerations
- Jumbo loans are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms
- Jumbo loans are available as fixed-rate or adjustable-rate loans
- Jumbo loans may have higher interest rates than conforming and conforming high-balance home loans and can have stricter underwriting and larger down payment requirements.
Best Jumbo Mortgage Providers
Other Best Mortgages
TheBestRates strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
© 2021 TheBestRates.co All rights reserved.