Jumbo mortgage loans are loans that surpass the maximum amounts of loan established by Freddie Mac and Fannie Mae conventional loan limits. The rates on the jumbo loans usually are higher compared to the conforming loans. These loans are used to purchase more expensive homes and high-end custom construction homes. Unlike traditional loans, Jumbo mortgage loans typically require a higher down payment. Basically, anything that is above the conforming loan limit is classified as a Jumbo mortgage loan. To remove any doubts about the different types of loans, Colorado Mortgage Pros classifies them into three sections;
Conforming loans: These are loans that amount up to $453,100 for most of the United States. The loan limit for Alaska and Hawaii is $679,650.
Conforming Jumbo: This includes loans such as mini-jumbo, agency jumbo and high balance conforming loans.
Super conforming: The loan amounts normally exceed the conforming level of $453,100 and up to $679,650. The upper limit of the conforming jumbo loan is divided into two categories. One is the permanent high cost of $625,500 and the temporary high cost of $729,750.
Jumbo loans that are commonly referred to as super jumbo or the non-conforming are loans above $729,750. The purchase jumbo loans are loans that you require to purchase your dream home. The refined jumbo loans allow borrowers to take advantage of the low-interest rates or tap into their home equity. For more information on Jumbo loans and other types of non-conforming loans, reach out to our Colorado Mortgage Pro specialists today.