Jumbo Loan
Mortgage with loan amount above the county conforming loan limit. Held in lender portfolios or securitized privately.
Jumbo loans exceed the conforming loan limit set by Fannie Mae and Freddie Mac (which varies by county; $766,550 in most counties, up to $1,149,825 in high-cost counties for 2024). Jumbo underwriting is stricter — 700+ FICO and 6-12 months of reserves typical. Pricing has compressed in recent years; jumbo rates are sometimes lower than conforming rates. Useful for buyers in high-priced markets and luxury homes.
Related terms
Conventional Loan
Mortgage not insured or guaranteed by the federal government. The standard mortgage product, sold to Fannie Mae or Freddie Mac.
Reserves
Liquid assets you have remaining after closing, expressed in months of housing payments. Lenders verify reserves to confirm ability to weather hardship.
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