JUMBO Loans (non-conforming)
2007 Jumbo Loan: > $417,000
Important Notice: Check out the information contained with our "Announcements" page! Changes are taking effect December 1st, 2008. Call us for more information.
To begin with, the term 'Jumbo Loan,' aka non-conforming loan, typically has a loan amount greater than $417,000. As of the date of the article (2007), a conforming loan has a loan limit of $417,000 as established by Fannie Mae and Freddie Mac.
It is a residential or commercial mortgage loan that does not conform to the underwriting guidelines or standards as set by Fannie Mae or Freddie Mac. It can also be defined as a loan that exceeds the limits, guidelines and requirements that Fannie Mae or Freddie Mac are willing to purchase from mortgage originators/brokers, and lenders.
The volume of 'Jumbo Loans' bought and sold on the secondary loan market is much smaller as compared to 'Conforming Loans' and therefore have a slightly higher interest rate. This difference may vary due to market conditions, real estate interest, and the strength or weakness of economy.
If you are looking for a jumbo loan and need more information or great advice, we maintain a large database of wholesale lenders and their programs and we invite you to call us for some of the most competitive rates and programs out there.