Jumbo Mortgage Loans
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.
Why choose a Jumbo Loan?
Jumbo loans are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms, and are available as fixed-rate or adjustable-rate loans. They may have higher interest rates than conforming and conforming high-balance home loans and can have stricter underwriting and larger down payment requirements.