| Jumbo loans provide financing to those who need a | | | | jumbo mortgage loans are available. For those who |
| loan above conventional loan limits. Fannie Mae | | | | need heavy financing, jumbo loan lenders are there to |
| (FNMA) and Freddie Mac (FHLMC), two large | | | | provide it. Large investors, such as insurance |
| agencies that purchase the bulk of residential | | | | companies and banks, often step in to fill the need for |
| mortgages in the United States, establish these limits. | | | | additional financing with maximum mortgage amounts |
| This limit signifies the maximum dollar amount that they | | | | going to the $1 million or $2 million range. Before |
| will purchase from an individual lender. Those who | | | | purchasing a jumbo mortgage loan, you should be very |
| need a first mortgage above the limit must look | | | | confident in your ability to make the monthly mortgage |
| beyond the traditional lending market and search for | | | | payments, which may be quite large. Here is a list of |
| lenders who offer jumbo loans. | | | | recommended Jumbo Mortgage Lender online. It's |
| Conventional Loan Limits | | | | important to use a reputable lender online to make |
| Conventional loan limits set by the two agencies are | | | | sure your personal information is secure. |
| sometimes updated to reflect mortgage market | | | | Finding a Lender |
| changes. The last change, occurring in January 2006 | | | | Because jumbo mortgage interest rates are normally |
| established a limit of $417,000 for single-family | | | | higher than the rates for conventional mortgages, it is |
| mortgage loans. This limit affects every state in the | | | | important to find a good lender. Fortunately, the lending |
| union except Alaska and Hawaii. These two states | | | | market for jumbo mortgages is competitive. Many |
| have limits that are 50% higher than the rest of the | | | | lenders online now offer this form of financing, which |
| country. | | | | will enable you to make comparisons easily. While |
| The Basics | | | | shopping, take time to carefully compare rates, lending |
| With rising home prices, many individuals and families | | | | fees, and loan terms and conditions. |
| find conventional loan limits constricting. This is why | | | | |