The loans have different rates and guidelines as a traditional or conforming mortgage. The majority of counties in the United States define a Jumbo Mortgage as one with a loan amount over $424,100. Some areas with higher home prices have a Jumbo loan amount of $636,150 such as New York, San Francisco, and Los Angeles. The conforming loan limits are set by Fannie Mae and Freddie Mac and are revised from time to time depending on market conditions.
Jumbo guidelines vary but will typically require a slightly larger down payment than a conforming mortgage. Traditionally, Jumbo mortgages also require a higher credit score and more reserves to qualify. Jumbo rates typically have a slightly higher rate than a conforming mortgage but in recent years the difference as been drastically reduced. A common alternative is a 1st and 2nd mortgage. This way you have a 1st mortgage with a lower rate and conforming guidelines. MiLEND will analyze the options and show you which will be best suited for your needs.
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