What is a jumbo loan?
The main difference between a jumbo loan and a typical mortgage is the amount you’re borrowing. Standard mortgages are limited to an amount known as the conforming loan limit. As of 2021, the conforming loan limit is $647,200 in most areas. As home prices continue to rise, many homes are becoming too expensive for a standard mortgage, and buyers who need to finance more than that will require a jumbo loan. Because they fall outside of federal loan restrictions, jumbo loans are not backed by government-sponsored organizations such as Fannie Mae or Freddie Mac. That means lenders must shoulder more risk, which can result in higher interest rates and stricter credit requirements.
At Elev8, we will work with you to find the best mortgage product for your needs. Because we are mortgage brokers, and we shop around with different lenders in order to find the most competitive rates, the jumbo loans we offer are unique in comparison to other lenders. While most lenders require a 20 to 30 percent down payment, which can make it difficult for homebuyers to qualify, we offer competitive rates often lower than standard conforming loan rates. We also require as little as 3 percent down.