Jumbo Loan for Loveland Home Buyers
Typically a jumbo loan is a mortgage loan option used when the amount borrowed is above conventional conforming loan limits. This standard is set by the two government-sponsored enterprises, Fannie Mae and Freddie Mac.
Jumbo loans are viewed sometimes as high risk for lenders, mainly due to their larger size rather than borrows credentials. If this type of loan defaults, it may be harder to sell a luxury residence quickly for full price, so it tends to make luxury prices more vulnerable to market highs and lows in some cases. The interest rate on these loans are typically higher and often the closing cost can be higher as well, due to the higher risk to the lender.
To overcome the lenders concern, it is beneficial to have a higher down payment available for jumbo loan seekers.
Although the maximum limit for conventional loans has been increased over the years, the number continues to change. It’s best to give us a call and determine if the amount you are wanting to borrow is more than the current maximum allowed for conventional loans and if this type of loan would benefit you.