Jumbo Loans were created for those who have a higher property value and can handle a larger monthly mortgage payment. They’re often referred to as “non-conforming” loans because they do not conform to the loan limits set by Fannie Mae or Freddie Mac. You will experience a higher interest rate and a larger down payment requirement if you qualify for a jumbo loan.
Choose a jumbo loan if you:
Want to finance properties with a loan amount in excess of $424,100 and can handle larger monthly payments
Are an investment-minded buyer who wants to leverage your assets more effectively
Loan value can reach up to $2 million, providing a buyer the convenience of having only one loan for their property.