Jumbo Home Loan and Mortgage Finance

Jumbo Home Loan

A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo Mortgages apply when agency (FNMA and FHLMC) limits don't cover the full loan amount. Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of residential mortgages in the U.S.

They set a limit on the maximum dollar value of any mortgage they will purchase from a bank or individual lender. Currently, this limit is $417,000. Any borrower wanting a mortgage above this level must look elsewhere for placement. Other large investors mainly banks step in to fill the need with maximum mortgage amounts going from $417,000 to the $5 million range.

Check out Jumbo Mortgage Rates.