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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.