Jumbo Loans

 A Jumbo Loan is a mortgage product used to finance properties that are more expensive than the current conforming loan limits set by the FHFA. The maximum amount for a conforming loan has been increasing on an annual basis and in most counties that limit is currently $726,200, higher cost areas also have access to High Balance Conforming loans (as high as  $1,089,300 in some areas). Loansthat exceed the local conforming loan limit require a jumbo financing.

The key difference between a jumbo and conforming loan is the size of the loan. 

Among the other factors that differentiate jumbo loans from conforming loans:

• Jumbo loans are more likely to require a down payment of at least 20%, although down payments may go as low as 10%.
• Jumbo mortgage rates may be slightly higher than those on conforming loans, depending on the lender and your financial situation. However, many lenders can offer jumbo loan rates that are competitive with rates on conforming loans — and some may even offer slightly lower rates depending on market conditions, so make sure to shop around.
• Because jumbo loans are bigger and there are some extra qualifying steps, expect higher costs at the closing table.