A jumbo loan is a type of mortgage designed to finance high-value homes that require loans above the standard conforming loan limit.
What Is a Jumbo Loan?
A jumbo loan is used to buy a home that requires a mortgage that exceeds the maximum conforming loan limits set by the FHFA. These limits also double as the maximum mortgage amounts that can be purchased or backed by Fannie Mae and Freddie Mac.
What Are the Jumbo Loan Limits?
Conforming loan limits typically vary by county. The FHFA announced in Nov. 2019 that the conforming loan limit for most counties would be increasing from $484,350 in 2019 to $510,400 in 2020.
Qualify for a Jumbo Loan
When applying for a traditional mortgage, lenders usually prefer for your debt-to-income (DTI) ratio to be below 36%. Jumbo loan applicants also typically need a higher FICO credit score than those applying for a conforming loan. Most lenders prefer you have a credit score of around 700, though some may call for a score of at least 720.
Comparing Jumbo Loans & Conforming Loans
If you’re buying an expensive home, you can expect its peripheral costs to also be a bit pricey. The same principle applies to jumbo loans, especially if they’re well above the conforming loan limit for your county.
We liked knowing upfront what was needed and being able to use the internet to apply online. Everyone was very helpful and knowledgeable. It was a good experience and would greatly recommend others.
Allen B. , Kerr McGee Oil & Gas Corp
Sue Took the time to explain and lead me through the process. They never treated my questions as silly… As a single mom, I appreciated dealing with other women – ones that understand what it was like trying to do this with a 2 and 3-year-old! Thank you for making it painless. Thank you!!
Rachel S. , Single Mom
Sue took care to explain the process and details to me, the wife, of purchasing our new home.
Darlene F. , Homemaker
I have a heavy work schedule that Sue accommodated by coming to my office to answer questions and assist in filling out forms. She also attended the closing. Good Job!
Harry C. , El Paso Corp.
Sue was recommended by my Realtor. Provided friendly and courteous service. Enjoyed working with Sue!!
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Your company has great people and friendly service. You will get all of my mortgage business!
Bradley S. , Texas Barcode Systems
Locked me into a very favorable rate on the first day of the contract! Was persistent on my behalf in providing the requisite financials to the underwriter.
Raymond F. , Retired
The prompt response to my application was great.
Judy R. , Homemaker
Sue was wonderful to work with! She made herself available to us at any time. Being first time home buyers, this was very helpful. keep up the good work.
You all are great – Thanks!
Thomas G. , Attorney at Law
Sue worked the hours to be sure that we could close at the earliest possible time. She stood by her good faith estimate.
Jayne L. , Homemaker
Awesome customer service!
Just a note to tell you how much Sandy and I appreciate your efforts to get our home refinanced. As we approach retirement age, getting our home paid for in a timely manner means so much to us.
Sam T. , First Nat. Bank of Eagle Lake
No surprises. Estimates were very accurate and we closed in a very short period of time. Very pleased with the process.
Kenneth R, El Paso Energy
Exceptional, friendly, prompt, and professional service. Kept us very well informed. Answered all our questions. Made our home refinancing painless. We have never received such excellent care.
Lovella & Don E.
She indicated that my closing costs with Cornerstone would be lower than the competition and it was. She called regularly to assure me that I was getting the best interest rate. And Sue was available at closing to answer any and all questions I had regarding my closing package. Sue was Great!
Salvatore M. , AES New Energy
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