For homebuyers who are looking for larger, pricier homes, a jumbo loan may be the right solution. These loans are available for those looking to purchase homes above what's known as the conforming loan limit, which is a set number that varies somewhat based on location. This number tends to range from $417,000 to $625,500, but may be higher in certain high-cost areas.
Jumbo loans have a few key benefits that make them attractive to certain borrowers. First, they offer competitive interest rates. Second, they can be adjustable-rate or fixed-rate loans, giving the borrower even more flexibility. And finally, because they're not backed by any government entity, there may be more leniency in the qualification process for these loans.
At the same time, because they involve higher dollar amounts that may carry more risk for both the borrower and the lender, some elements of jumbo loans may be more stringent. For instance, borrowers may need to have a higher credit score and make a larger down payment than they would with other loan types.
If you're interested in learning more about whether a jumbo loan is right for your needs, contact Primary Residential Mortgage today. We can help you understand the qualification process, plus show you how to avoid any potential pitfalls that could stand in the way of homeownership. Our team is experienced with jumbo loans that reach up into the millions on a regular basis, and can help you find the perfect loan for your unique situation.