A jumbo loan, a type of non-conforming loan, is a home mortgage that allows financing for loan amounts that exceed the conforming maximum of $424,100 (depending on what area of the country you’re in, loan amount may vary). Since home prices for larger or luxury homes can often surpass this amount, this loan might be perfect for the house of your dreams.
A jumbo loan is your best (or only) option if you need to borrow between $424,100 and $3,000,000 for a home purchase or refinance. Jumbo loan rates can be higher, lower, or the same as conforming loan amounts.
With the fluctuating market, jumbo home mortgage loans do call for stricter requirements than in years past, but still follow a similar process of a typical loan.
- Finance a home over the maximum loan amount established by the Federal Housing Finance Agency
- Convenience of one loan for the entire loan amount
- Primary residence, second home or investment property
- Fixed-rate or adjustable-rate mortgages (ARM)