Jumbo Loans
Jumbo Loans
Jumbo mortgages are home loans in an amount that surpasses FHFA’s conforming loan limits. In 2024, that means any loan over $766,550, or $1,149,825 in higher-cost areas. San Diego, for example, has a limit of $1,060.250. Because these are bigger loans ineligible to be purchased by the GSEs, they can present more risk to the lender.
- Pros
- Can finance a more expensive home
- Competitive interest rates, lately on par with those on conforming loans
- Often the only option in areas with high home values
- Cons
- Not available with every lender
- Higher credit score requirement, often a minimum of 700
- Higher down payment requirement, often 10% to 20%
If you’re looking to finance a home with a purchase price exceeding the latest conforming loan limits, a jumbo loan is the best option.
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