Fannie Mae and Freddie Mac both have limits on the value of homes that these associations protect. Homebuyers who can afford to take out a loan on homes with a value higher than the conforming loan limits can utilize jumbo loans to make their purchase.
The only benefit of a jumbo loan is that one allows you to purchase a home that exceeds the mortgage limit of the region of the United States where that home is located.
If a borrower needs to borrow more than that mortgage limit, then their only option is to apply for a jumbo loan, which is not backed by the Federal Housing Finance Agency.
Because there is no federal backing for jumbo loans, there is a much more comprehensive set of requirements or a borrower to get one. Here are the criteria that most lenders require for a borrower to qualify for a jumbo loan:
For most of the United States’ nearly 3,000 counties, the loan limit that is covered by the government
Call our experts today, to see if you quality for a Jumbo loan!