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Jumbo Loans
Jumbo mortgage loans allows you to purchase a more expensive home with a loan amount above the usual, or conforming, loan limits, which are set by the U.S. federal government’s Federal Housing Finance Agency. Each year, the FHFA reviews these loan limits and usually revises the limits upward for the following year.
What is a Jumbo Mortgage Loan?
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A jumbo loan mortgage is one whose loan amount is higher than the loan limits set by the FHFA. We’re talking homes worth $800,000, $900,000 or even higher price tag in many cases. These loans typically come with a higher interest rate, stricter underwriting rules (including a higher credit score requirement) and require a larger down payment than your everyday home loan.
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How big is a typical jumbo mortgage down payment?
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That depends on several factors, including the purpose of the property being financed with the jumbo loan. At Fairway, our core jumbo mortgage program allows for down payments as low as 10% for the purchase of a primary residence, whereas a typical 30-year, fixed-rate Conventional conforming loan allows for a down payment as low as 3%.
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But these requirements sometimes shift due to the cyclical nature of the real estate and mortgage markets, and your Fairway mortgage advisor may have access to other jumbo loans programs, so be sure to ask about all your jumbo loan mortgage options as you consult with your Fairway mortgage advisor!