The term "jumbo loan" itself is not always used to represent a loan that does not conform to Fannie Mae and Freddie Mac's loan limits. Mortgage lenders often refer to jumbo loans when talking about mortgage programs that have generally larger loans. It is not uncommon to find super jumbo loans of over $1 million and in some cases up to $5 million or greater offered by a number of United States banks.
When a Loan Becomes a Jumbo Loan
When a loan amount is higher than the conforming limit set by Fannie Mae and Freddie Mac, it becomes a Jumbo loan , or non-conforming loan. In 2006 the jumbo loan limit has been set at $417,000. Loans which are larger than this limit are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities In some cases depending on the program this loan has a slightly higher interest rate. Since the jumbo loans are not funded by government sponsored entities these loans are funded directly by several United States banks. In some cases jumbo mortgage programs are more flexible in terms of approval guidelines and rates can in some cases actually be lower on specific programs because they are funded directly by banks.
2006 Coventional Loan Limits
* Single Family / Condo Loan Limit: $417,000
* Two Family Loan Limit: $533,850
* Three Family Loan Limit: $645,300
* Four Family Loan Limit: $801,950
(Loan Limits are Higher in Hawaii, Alaska, Guam, and the US Virgin Islands)
If you are interested in finding out about securing a luxury home purchase with a jumbo mortgage loan, or obtaining your Jumbo Loan with a low or no down payment, please complete our quote form to obtain a free jumbo loan quote with no credit checks required.