13 Aug Learn about Jumbo Loans
A jumbo loan is a home mortgage loan that allows financing that exceeds $548,250 (the loan amount may vary depending on what area of the country you are in), which is the maximum conforming loan limit in most areas as of 2021. If you are considering purchasing a home in a higher-cost area (e.g., Los Angeles, New York, Honolulu), the baseline limit is $822,375.
Jumbo loans are possibly your best option if you need to borrow between $548,251 and $3,000,000 for a home purchase or refinance and are looking for higher but flexible rates and terms as well as no pre-payment penalties.
Keep in mind that jumbo loans call for somewhat stricter underwriting requirements as compared to conforming loan requirements. You will generally need a 10-20% down payment and 2-6 months of reserves to qualify. However, the rates on the fixed or adjustable-rate programs are comparable to conforming rates and offer flexibility for financing with a larger loan.
A jumbo loan can be the solution you need to pay for that home of your dreams. Call Fairway Fort Lauderdale today! We would love to help!