A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $806,500 in most counties, as determined by the Federal Housing Finance Agency (FHFA). Mortgage loans that exceed the local conforming loan limit require a jumbo loan.
Also called non-conforming conventional mortgages, jumbo loans are considered riskier for lenders because these loans can't be guaranteed by Fannie Mae and Freddie Mac, meaning the lender is not protected from losses if a borrower defaults. Jumbo loans are typically available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms.
If you would like to learn more about Jumbo Loans, give us a call at 803-771-0080 or fill out the short form on this page and we will get back with you promptly.