FHA Jumbo Loan Purchase - Over $1 Million

FHA Jumbo Loan Limits for Home Purchases

A Super Jumbo Loan is a loan request exceeding $650,000. A super jumbo loan typically has a rate .25% higher than your average jumbo loan.  Super Jumbo Mortgages are those offered above and beyond the average jumbo loan amount of $417,000 and have special programs aimed directly at these consumers. Programs range from "Interest Only" Libor Loans, Adjustable Rate, and Fixed Rate Mortgages.

Jumbo loans, also called non-conforming loans, are mortgages with loan amounts greater than the conforming loan limit. The conforming loan limit is set every January. The current conforming loan limit is $417,000.

 

What is the Conforming Loan Limit?

The conforming loan limit is the maximum loan size eligible for purchase by either Fannie Mae or Freddie Mac, who purchase the underlying securities from mortgage originators. Those funds are then reinvested in new mortgages, and the flow-of-funds cycle continues.

The conforming loan limit, or “Jumbo Loan amount” is set every January. This year, the limit for single-family homes and condominiums is $417,000. Quicken Loans conforming loan limit has also been raised to $417,000.

 

When a Loan Becomes a Jumbo

When a loan amount is higher than the conforming limit, it becomes a Jumbo Loan – or non-conforming loan – with slightly higher interest rates.

Jumbo Loans, compared with historically low mortgage rates, can bring greater flexibility for some home buyers to purchase the house they want and make the payment they want.

 

 

 

 

 
 

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