Jumbo Loans More Affordable?

The federal government has made an effort to make Jumbo loans more affordable but the move may not be paying off quite yet, or as the government thought it would, as the loans remain difficult for borrowers to get.

Jumbo loans are mortgage loans for expensive homes, and the loan ranges from between $417k-$730k; while the loans sound big (and they are), in some housing markets, these large loans are just the price of admission for even a starter home. Depending on a few factors, there are several types of Jumbo loans. Do your due diligence to see which one best meets your needs, if you’re considering taking out a Jumbo loan.

FHA Jumbo-Conforming
FHA Jumbo-conforming loans follow the Federal Housing Administration’s guidelines

Bank Jumbo loans
Bank Jumbo loans don’t conform to FHA guidelines or any other agency guidelines, but they may be a better bet based on your situation

Agency Jumbo-conforming
Agency Jumbo loans meet Fannie Mae (FNMA) or Freedie Mac (FRE) guidelines, and can be sold to agencies

Why would you take out a Jumbo-conforming loan?

Because you have a Fair Isaac (FICO) credit score of at least 660
Because you don’t want to may for the last ‘I’ in PITI (i.e., mortgage insurance)
Because you want to borrow more than the $417k but leass than the conforming loan limit amount
Because you have 20% of the sale price for a down payment
While I can go into a great deal of Jumbo-conforming loan information here, I’d rather provide you with a few resources outside of

FinanceBlogOnline so that you can get the information from folks who live, breathe, and eat Jumbo-conforming loans. So, here they are:

• Freddie Mac
• Fannie Mae
• Wikipedia’s Jumbo Loan Definition
• Investopedia’s Jumbo Loan Definition
• The Great Loan Blog
• Luxury Mortgage Blog
• Bankrate’s Mortgage Blog