Jumbo Mortgages
A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo Mortgages apply when Fannie Mae (FNMA) and Freddie Mac (FHLMC) limits don’t cover the full loan amount.
Fannie Mae and Freddie Mac 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 which they will purchase.
Currently, this limit is $417,000. This leaves a portion of the market to look elsewhere for placement. Other large investors, such as insurance companies and banks, step in to fill the need with maximum mortgage amounts going to the $1 million or $2 million range.
The average interest rates are typically greater than normal for conforming mortgages, and vary depending on property types and mortgage amount.
Jumbo Mortgage Loans offer:
- Larger loan amounts for purchase or refinancing
- 100% LTV with 600 FICO scores
- Jumbo loan amounts to $20 million
Jumbo Mortgage Loans facilitate high-end purchases of:
Primary residences, Second homes - vacation and Investment properties.
Jumbo or Super Jumbo Mortgage Loans are best for those who:
- Want to finance larger, more expensive properties.
- Are investment-minded buyers who want better asset leverage
- Would like to apply for jumbo mortgages with a correspondant lender.
NEW FANNIE MAE LIMITS
Every year, new jumbo loan limits are announced for one- to four-family loans which may be purchased by the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac). These corporations are the two largest “secondary market” agencies - corporations which purchase closed loans from mortgage lenders.
As announced on November 26, 2006, the “conforming” loan limits for 2007 are:
- 1 Family - $417,650
- 2 Family - $533,850
- 3 Family - $645,300
- 4 Family - $801,950
Contact New Direction Capital for more information.