Jumbo Loans
A Jumbo Loan is a mortgage that exceeds the loan limits set by the Federal Housing Finance Agency (FHFA), meaning it cannot be purchased or guaranteed by Fannie Mae or Freddie Mac.
For 2024, the standard limit for a one-unit property is $766,550 (higher in certain high-cost areas). Any loan above this figure is considered a Jumbo loan.
The main advantage is access to higher financing amounts.
However, the approval process is significantly more stringent, typically requiring:
- Stellar credit history (scores usually above 700).
- A lower debt-to-income (DTI) ratio (usually below 43%).
- The overall cost of obtaining a Jumbo Loan may be higher than a conforming loan.
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