Jumbo loans are available for buyers looking to purchase a more expensive home exceeding the conforming loan limits. You must have excellent credit and be able to show cash reserves.
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What Are Jumbo Loans?
Jumbo loans are considered non-conforming mortgages because the loan amount exceeds the guidelines set in place by Fannie Mae and Freddie Mac. The Federal Housing and Finance Agency (FHFA) sets the maximum conforming loan limits for mortgages which can be acquired by Freddie Mac and Fannie Mae. Loan limits can vary by location and the number of units. If a home is priced above the conforming limit for the area it’s in, jumbo financing may be used to purchase or refinance the home.
Benefits of a Jumbo Mortgage
- May be the most affordable way to finance a home beyond conforming limits
- Fixed and adjustable rate options
- Interest rates on jumbo loans aren’t necessarily higher than those on conforming loans
- Can be used to refinance an existing mortgage into a lower rate
Jumbo Loan Alternatives
As an alternative to jumbo financing, some home buyers choose to make a larger down payment in order to reduce the loan size and therefore ensure that it qualifies for a traditional conforming loan. This may not be feasible for some borrowers, which makes the jumbo loan ideal for buyers who may not have as much cash saved up, or those whose investment assets are illiquid.
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Is A Jumbo Loan Right For You?
When you’re buying a higher-end home and need financing which exceeds the conforming limits of your area, a jumbo mortgage may be the solution. Headquartered on the Intracoastal Waterway in North Carolina, Alpha Mortgage has been helping borrowers purchase luxury beach and waterfront property with jumbo loans for 40 years. We offer a variety of fixed and adjustable rate jumbo loans at some of the most competitive interest rates in the Carolinas.
Not sure if a jumbo mortgage is right for you?
Call the team at Alpha Mortgage for a free quote and home loan consultation.