What is a JUMBO home loan?
A JUMBO loan is a home loan where the loan amount exceeds the “conforming loan limit” set on mortgages eligible for purchase by Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that ultimately buy and administer most single-family-home mortgages in the U.S.
For example, the conforming loan limit for the year of 2022 is $647,200 in most areas. JUMBO mortgage loans usually have higher interest rates than your conforming conventional loans. To obtain this loan, usually you are required to have a minimum down payment of 20% as well as a minimum credit score of 720 or more.