Do You Need a Jumbo Loan?

Dear Ali, 

Today’s real estate market is competitive and many homes are priced above the conforming loan limit. The conforming loan limit is the cap for mortgages that Fannie Mae or Freddie Mac will buy. If you're interested in investing in a more expensive home, you may need a jumbo loan. 

What is a Jumbo Loan?

A jumbo loan is a non-conforming loan that is not backed by Fannie Mae or Freddie Mac. They are privately-held mortgages since they are not backed by a federal agency.

How Do You Qualify For a Jumbo Loan?

While some lenders may accept as little as 10% down for a jumbo loan, most will require a down payment of at least 20% to qualify. For jumbo loans, lenders will likely require a FICO score of 700 or higher. Also, you may have a higher interest rate when compared to a conforming loan. 

Should You Get a Jumbo Loan? 

In some markets, getting a jumbo loan may be your best option due to housing prices. However, it's critical to ensure that you can afford your mortgage by carefully considering your budget. Stay on track with your financial goals!

Whatever type of home loan will best meet your financial needs, I am here to help!

Best regards, 

Anna Smith