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Jumbo Loans

What is a Jumbo Loan?

A jumbo loan, or jumbo mortgage, is a home loan for an amount that exceeds the "conforming loan limit" set on mortgages eligible for purchase by Fannie Mae and Freddie Mac, the government-sponsored enterprises that ultimately buy and administer most single-family-home mortgages in the U.S. 


When Does It Make Sense to obtain a Jumbo Loan?

If you want to buy a luxury home, or one with amenities that make it significantly more expensive than the average home in your community or county, a jumbo loan may be your only option for financing the purchase. Applying for a jumbo loan only makes sense if you have the financial resources needed to pass the rigorous qualification process, including a credit score of about 700 or better and sufficient liquid assets to cover a down payment of 10% or more.


Why is it easier to get a Jumbo loan with Mountain Mortgage?

Mountain Mortgage specializes in harder to find loans and loan programs to fit the needs of our clients. Being a TRUE Mortgage Broker we are able to work with Wholesale Portfolio Lenders who lend at higher loan amounts vs the conforming banks that SELL there paper to investors. 


NO you don't need 20% down.

Jumbo loans have the reputation for needing larger down payments that conventional. While this is true Jumbo products with Mountain Mortgage start at 10% down with NO MORTGAGE INSURANCE.

Jumbo vs conventional

For 2020, in most of the continental U.S., the conforming loan limit is $510,400. In Alaska, Hawaii, certain U.S. territories, and specific counties in the lower 48 states where home prices are exceptionally high, the limit can be as much as $726,525, or 150% of the national median. You can check the conforming loan limit for all U.S. counties at the FHFA website.

A mortgage for an amount greater than the local conforming limit is considered a jumbo loan.

Jumbo loans typically come with strict credit requirements and an even more rigorous review of applicant finances than conventional mortgages.