Jumbo Loans
If you’re planning to buy a home for more than $417,000, your mortgage will be considered a non-conforming loan so you’ll require special loan programs and lenders who won’t rely on the federal government to back the loan.
Since a Jumbo Mortgage is considered higher risk by lenders, and since it can’t be sold to Fannie Mae or Freddie Mac, you should expect to pay a higher interest rate. The rate could be 1/4 of a point or more, depending on the circumstances.
If your loan amount is greater than $417,000, you may have no other option than a Jumbo Loan for your new home purchase. Contact me today and we can discuss your options together.