What Is A Jumbo Loan?
A jumbo loan, or jumbo mortgage, is a mortgage loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans are called nonconforming loans because they do not conform to those limits.
Because these jumbo mortgages don’t have the guarantees that come with conforming loans, borrowers tend to be subject to greater scrutiny and may or may not higher borrowing costs. A jumbo loan may attract different investors than those who are typically into buying conventional mortgage bonds.
The Advantages of a Jumbo Loan
- Interest rates for jumbo loans are typically lower than conventional loans.
- Purchase a home with as little as 10% down.
- Jumbo loans are available for primary homes, second homes and investment properties, located on up to 40 acres.
- Veterans and service members who qualify for a jumbo VA loan can often buy a home with a much lower down payment compared to other loans.
The Benefits of Getting a Loan from All Coast Lending Inc.
- You get a completely online application with less paperwork.
- Home Loan Experts are available via chat, email and phone to help you get the jumbo loan that’s right for you.
- We don’t charge you to make your mortgage payments online.
- No prepayment penalties if you pay off your loan early.
How It Works
The Different Types of Jumbo Loans
- Choose between a fixed or adjustable interest rate for all jumbo loans.
- Jumbo loans are available with different terms – the length of the mortgage.
How Jumbo Loans Work
- Jumbo loans are also called nonconforming loans because they’re over conventional loan limits.
- In most of the country, the conventional loan limit is $647,200. The limit is higher in areas where housing is more expensive.
- For buying a home, we finance jumbo loans up to $5,000,000.