TRUSTCO
Serving Central Indiana - North Texas Market
Jumbo
Loans
A Jumbo loan is for home purchases that exceed the conforming limit set by the Federal Housing Finance Agency. Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac.
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Think BIG with a Jumbo Loan
A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above
the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $510,400; however, the limit is $765,600 in higher cost areas.
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Jumbo Loan Highlights
If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you.
Highlights of non-conforming loans include:
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Finance a home over the maximum loan amount established by the Federal Housing Finance Agency
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Higher purchase limits allow borrower to purchase more house
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Convenience of one loan for the entire loan amount
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Primary residence, second home or investment property
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Fixed-rate or adjustable-rate mortgages (ARM)
Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements and tax implications. These kinds of mortgages have gained traction as the housing market continues to recover following the Great Recession.