Jumbo loans, also known as non-conforming loans, are mortgage loans that exceed the conventional loan limits set by the Federal Housing Finance Agency (FHFA). These loans are designed to finance high-value properties, typically in affluent neighborhoods or areas with a high cost of living. Jumbo loans are not backed by government-sponsored enterprises like Fannie Mae or Freddie Mac, which means they are offered by private lenders and come with their own set of guidelines and requirements.
Key features of jumbo loans include higher loan amounts, allowing borrowers to purchase luxury homes or properties in expensive markets. Due to their larger size, jumbo loans often come with stricter qualification criteria, such as higher credit scores, lower debt-to-income ratios, and larger down payments, typically ranging from 10% to 20% or more. Additionally, the interest rates on jumbo loans may be slightly higher than those on conforming loans, as lenders take on more risk by offering these larger loans.
Although jumbo loans may appear more challenging to qualify for, borrowers with strong financial profiles can benefit from the flexibility and purchasing power these loans provide. To obtain a jumbo loan, it is crucial to work with a lender experienced in handling non-conforming loans to ensure a smooth and successful application process.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 2379616
www.nmlsconsumeraccess.org
2040 County Line Road
Huntingdon Valley, PA 19006
Phone: 215-671-0404
brendanjbarry@haverfordmortgagecompany.com
Powered By LenderHomePage.com