Question 1

Do you need a 20% down payment on a jumbo loan?

Accepted Answer

Not necessarily. If you shop around, you can find a mortgage lender that allows borrowers to take out a jumbo loan with 10% down.

Question 2

Can I expect higher interest rates on jumbo loans?

Accepted Answer

Interest rates for jumbo loans vary across mortgage lenders. Getting a jumbo loan with rates on par with conforming loans is possible. In some cases, you may even get lower jumbo loan rates.

Question 3

Why do conforming loans have limits?

Accepted Answer

Conforming loans have limits set by FHFA annually to be eligible for purchase by government-backed mortgage companies Fannie Mae and Freddie Mac.

Question 4

Why are jumbo loans necessary?

Accepted Answer

Jumbo loans make it possible for borrowers to finance high-priced properties and homes in highly competitive real estate markets.

Question 5

How do I know if a jumbo loan is right for me?

Accepted Answer

A jumbo loan may be the right financing option for you if you need to borrow more than $726,200 to purchase your dream home.

Question 6

Why do jumbo loan limits vary per state?

Accepted Answer

Jumbo loan limits tend to differ per state and even county because of varying average home values, real estate markets and state lending limits.

Question 7

Am I limited to purchasing a single-family home with a jumbo loan?

Accepted Answer

No, you can also finance multi-unit properties with a jumbo loan.

Question 8

Is it hard to get a jumbo loan?

Accepted Answer

It can be hard to obtain a jumbo loan due to its stringent requirements. In general, jumbo loans are best for high-income borrowers who can afford million-dollar properties but can’t pay in cash.

A Guide to Jumbo Loan Limits in 2023

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