Jumbo home loans are the way to finance a purchase with a value above federal standards. The conventional conforming loan limit is $424,100. For a home with a purchase price above this limit, a jumbo loan is needed.
It’s true that a jumbo home loan might be the route to go if you were trying to buy a castle, but in some areas with high housing costs a jumbo loan might be needed to purchase a relatively modest house. 1st Point Lending Inc. can help the whole spectrum of these customers.
Jumbo home loans (aka: non-conforming mortgages) are those that exceed the conforming loan limit for the location of the property. A single-unit property in most U.S. counties has a federal cap of $417,000. In higher cost areas that cap starts at $625,500.
Using a jumbo home loan allows you to avoid making an enormous down payment to reduce your balance to a conforming level. While a higher interest rate usually comes along, the convenience is worth it.
To learn more about jumbo home loans, please contact a 1st Point Lending Inc. experts. Our team is at your disposal.