Purchase Your Dream Home With A JUMBO Loan From Park Place Collective
A jumbo loan, also known as a jumbo mortgage, is a type of mortgage loan that exceeds the conforming loan limits set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. These limits are established to ensure the liquidity and stability of the mortgage market.
The specific conforming loan limits vary depending on the location and can change from year to year. In general, a loan amount exceeding the limit set for a particular area would be considered a jumbo loan. In the United States, jumbo loans are typically used to finance high-value properties or luxury homes in areas with expensive real estate markets.
Since jumbo loans exceed the conforming loan limits, they carry a higher level of risk for lenders. As a result, jumbo loans often have stricter underwriting requirements and higher interest rates compared to conforming loans. Lenders may also require larger down payments and have more stringent credit score and income requirements.
It's worth noting that the conforming loan limits are not fixed and can be adjusted annually based on changes in housing prices and market conditions. Therefore, what qualifies as a jumbo loan in a specific year may change in subsequent years. | .pdf%20(250%20x%20250%20px).png)
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