Line J
Jumbo
Not a grander loan. A loan that crossed a line on a map, and lost its government backing when it did.
- Backed by
- Nobody. The lender or an investor holds the risk
- Trigger
- Loan amount over the county conforming limit
- Typically expects
- Stronger reserves and documentation
What the program actually says
A jumbo loan is simply one that exceeds the conforming loan limit for the county the property sits in, so it cannot be sold to Fannie Mae or Freddie Mac.
Because there is no agency backstop, the terms are set by whoever is willing to hold the loan. Underwriting is a private matter and it varies considerably between lenders.
In practice that usually means more documentation, more scrutiny of assets and reserves, and often a second appraisal on larger amounts.
The limit is a county figure, not a national one. The same loan amount can be conforming in one county and jumbo in the next.
See what the payment does
Illustrative figures only. What that means.
Principal and interest, worked from numbers you choose. It carries no program specific mortgage insurance, fee or premium, because those depend on your file rather than on arithmetic.
10.0% of the price
A worked number, not a quote or an offer.
Principal and interest, monthly
$0
Property tax, homeowners insurance, any mortgage insurance and any HOA dues sit on top of this figure. They vary far too much by address for a national number to mean anything.
- Loan amount
- $0
- Loan to value
- 0%
- Total interest over the term
- $0
- Total of payments
- $0
Below 20% down, a conventional loan normally carries private mortgage insurance until you reach 20% equity. It is not in the figure above.