What is the specific variable or breaking point that makes a home loan go from not jumbo (conforming) to jumbo (conforming), when talking about mortgages?
A conforming loan is one that conforms to the guidelines set by Fannie and Freddie in regards to their loan limits. A conforming loan is one that is equal to or less than $417,000, among other details that must follow. There is security for a lender when a loan meets all the conforming guidelines, because that loan is supported by the government in case of default. Therefore, lenders offer a better interest rate on conforming loan in comparison to non-conforming/jumbo. There are more details other than loan size that are taken into question when defining conforming and non, but all in all, if a property and borrower meet typical uniform guidelines like a conforming loan and the loan is higher than $417k, it will fall within the Jumbo/non-conforming guidelines.
Your lender can help you decide for you if Jumbo Lending is the right direction for you to go, or you can see one of my previous posts to try to understand the right strategy for choosing jumbo lending.
Max Jones
My wife and I are wanting to get into a large nice home that we could stay in for a while, and I think that looking into jumbo loans would be good for us. I’m going to have to take your advice and talk to our lender about jumbo loans to see if it would be a good option for us. I’m going to have to see if I can qualify for a jumbo loan and what we would be able to do with the money we can get! Thanks for the help!
Brad Lynch
Max
I just got this message…sorry to not respond any sooner. I do jumbo lending, so if you need a veteran to handle your loan process, I would love to help. You can contact me on my cell at 469-450-2723. Thanks,
Brad Lynch