Jumbo loans, also known as “non-conforming” are simply loans that exceed the conforming and high-balance loan limits, set forth by Fannie Mae and Freddie Mac. Jumbo loan amounts start at $726,526 and go up to loan amounts of $5 million. Super-Jumbo loans go up to loan amounts of $9 million or more.
While underwriting guidelines for jumbo loans may be slightly stricter than those of conforming loans (typically requiring a minimum credit score of 660+ and additional reserve requirements), there is a wider variety of loan programs and options available, often with lower interest rates than conforming loans. Jumbo loans offer a unique opportunity for well-qualified borrowers to finance higher-end homes or refinance their existing mortgages.
