Pros – Helps homebuyers borrow a larger amount of money. When a loan amount reaches a certain point, Jumbo and Super Jumbo Loans can offer high-end financing that a traditional loan can’t.
Cons – Need a cleaner credit score when compared to other loan programs.
• A mortgage lender extending a loan type that exceeds the limitations of a conventional mortgage (as defined by the federal government) can extend more money than the limit.
• Typically used when a loan exceeds the Federal Housing Finance Agency (as of early 2022 when a mortgage exceeds $647,200).
• Jumbo loan limits can vary from county, even within a state.
• Jumbo loans can be used purchase a primary residence, vacation home, or investment property.
• Jumbo loans come in a wide array of shapes and sizes. You will likely find both fixed-rate and adjustable-rate selections, and numerous loan terms to choose from.