Jumbo Mortgage FAQs
A jumbo mortgage loan is a mortgage that exceeds “conforming” loan limits. Conforming loan limits were established in 2006 by Fannie Mae and Freddie Mac, and new limits were established in 2018. The current conforming loan limit for a single-family home is $453,100. This means that any loan of more than $453,100 is considered a jumbo or non-conforming loan. That limit can vary however, depending on the county the home is located in. There are roughly 200 counties in the U.S. where the loan limits are higher due to higher home prices.
You can use this link for a map detailing each state’s individual requirements: fhfa.gov/DataTools/Tools/Pages/Borrower-Assistance-Map.aspx
In addition to financing single-family homes for your primary residence, you may also use a jumbo loan to buy a second home or personal investment properties.
Fannie Mae has made some changes recently to the down-payment requirements for purchasing property with a high balance mortgage. The amount of equity required for a refinance is lower than it is for a purchase.
Here is a quick look at the down-payment and equity requirements for fixed rate mortgages.
Loan-to-value (LTV) ratio is a term used by mortgage lenders to show the ratio of a loan or loan balance to the value of a property purchased or refinanced. The term is commonly used by mortgage lenders, banks, and other financial institutions to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property.