What Is a Jumbo Loan?

If you’re looking for a property in a pricier area, a jumbo loan can provide the financing you need. Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements and tax implications. Because they carry a higher credit risk, borrowers are subject to more rigorous credit requirements than homeowners applying for a conventional loan. A jumbo loan is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA) Jumbo Loan Limits

Qualifying Requirements: