According to the Federal Housing Finance Agency a Jumbo loan is any loan over $417,000.
Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit.” Loans above this limit are known as jumbo loans.
The national conforming loan limit for mortgages that finance single-family one-unit properties increased from $33,000 in the early 1970s to $417,000
It is slightly harder to qualify for a Jumbo loan because lenders have tougher requirements to qualify, given the large amount of money involved. It is also important to know that you may need a higher down payment and that mortgage rates will likely be slightly higher.
To qualify for a Jumbo purchase loan you will need:
- Minimum Credit Score of 700
- Minimum Down Payment of 20%
- Debt to Income Ratio Under 45%
Jumbo loans in Minnesota are loans that I have done many times, because of this I will be able to make this a smooth home buying experience for you. I am a fully licensed mortgage broker for the state of Minnesota. I have the experience necessary to get you the best Jumbo home loan at the lowest rate possible and possibly even no closing costs. Please fill out the contact form to the right or you can call me at work at 763-400-7537 or on my mobile at 952-807-8532.