Definition of «jumbo loan»

A jumbo loan is a type of financing that exceeds the limits set by Fannie Mae and Freddie Mac, which are government-sponsored enterprises that purchase mortgages from lenders in order to provide liquidity to the housing market. These loans typically range between $484,350 and $726,525 for a single family residence, depending on where the property is located. Due to their larger size, jumbo loans often require more stringent underwriting standards and higher down payments than conventional mortgages.

Sentences with «jumbo loan»

  • Lately, reports show some people have been able to get approved for jumbo loans with credit scores of 650, but in t's best to aim for 700 or higher. (smartasset.com)
  • Real estate professionals who have worked with jumbo loans in the past know that the process and underwriting guidelines are far different than they are for conforming mortgages. (rismedia.com)
  • If you need to take out to jumbo loan in order to purchase your dream home, remember that they come with higher interest rates. (smartasset.com)
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