Jumbo Home Loans

Home loans
A loan for big ideas.

Got your eye on a higher-priced home? A jumbo (or non-conforming) loan might be an option if you’re considering a loan over the conforming loan limits. Loans under the conforming loan limits are known as conforming loans. Jumbo or non-conforming loans are over this limit.

Conforming loan limits are established by the Federal Housing Finance Agency (FHFA) and change every year. Some areas may be considered “high-cost” if the median home value is higher than the conforming loan limit. In this case, the conforming loan limit may be higher in that area. (Ask for details.)

Jumbo loan programs allow for some flexibility and include both fixed-rate and adjustable-rate plans.

 

Advantages:
  • Jumbo loans offer affordable and flexible terms for higher-priced homes.
  • Ideal for high-income earners with good credit.
  • Low-down-payment options are available.

 

Disadvantages:
  • Interest rates for jumbo home loans are higher.
  • Qualification standards may be tougher.
  • Lenders may have reserve requirements.
  • Closing costs are typically higher.

If you're interested in a jumbo mortgage as a loan option, consider the loan limits in your area. To learn more and find out if you qualify for a jumbo loan, contact an Evergreen Home Loans loan officer.

Frequently asked questions:
What are jumbo loan reserves?

Reserves, also called post-closing liquidity, are qualifying assets that are available after you close your loan. With jumbo loans, many lenders have reserve requirements for the buyer.

Can a jumbo loan be used to refinance a mortgage?

It is possible to refinance a jumbo loan. Like with the initial loan, there are eligibility requirements that must be met.

What types of property can a jumbo loan be used for?

Jumbo loans may be used to buy primary residences, second homes, vacation homes, and investment properties. The government doesn’t restrict qualified borrowers on how to use a jumbo loan.

What is the difference between a conforming mortgage and a non-conforming loan?

Conforming loans are the most common home loan type and meet requirements determined by Fannie Mae and Freddie Mac. There are loan limits that are set for them. Typically, these loans have lower interest rates and overall fees.

Non-conforming loan don’t have to meet the same requirements as conforming loans, and lenders are able to give larger loans. Lenders may keep or sell non-conforming loans on the secondary market.

Are conforming loans and conventional loans the same?

A conforming home loan is different from a conventional home loan. Between these loan options, a conforming loan meets requirements determined by Fannie Mae and Freddie Mac. A conventional loan doesn’t need to meet those same requirements. Additionally, a conventional loan can be a conforming loan, but that isn’t always the case.

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