What is a Jumbo Loan?
Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. Typically Jumbo Loans require a higher down payment than traditional loans.
Updated California Conforming Loan Limits.
Most counties within California have a 2018 conforming loan limit of $463,450, for a single-family home. Higher-priced areas, like those in the San Francisco Bay Area, have conventional limits of up to $679,650 to reflect the higher home values. Other counties fall somewhere in between these “floor” and “ceiling” amounts. Find out your Counties loan limits. Ask John Today.
Jumbo Loans vs. Conventional loans.
A conforming loan is any loan amount of $417,000 or less. A jumbo loan is any loan greater than $417,000. Generally speaking, jumbo loans will have slightly higher interest rates than a conforming loan. Updated Loan Limits have gone up in every county in California. Ask John for Loan limits in your county.
Benefits of a Jumbo Loan.
The biggest advantage of this type of loan is that you are going to be able to borrow the money that you need for a large house purchase. In some areas, real estate can be very expensive. If you are going to purchase a house, you may need to borrow a great sum of money. This loan is going to allow you to borrow the full amount of money from one loan instead of having to break it up into two different loans. This will also allow you to avoid tapping into your savings to purchase a large house. If it were not for jumbo loan programs, you may need to come up with a large amount of cash out of your own pocket.
Another advantage of this type of program is that you are going to be able to choose from a variety of different loan programs. For example, you could potentially get a 30 year fixed-rate loan or you could get a mortgage with an adjustable-rate. This is going to allow you some flexibility in your loan terms.
Get Pre-Approved for a Jumbo Loan
If you are looking to purchase a home or refinance in Glendale, Burbank, La Canada, Pasadena, Los Angeles, San Fernando Valley, and surrounding areas in California, contact John Piliposyan with Provident Lending Group at (818) 482-4747 for more information, or simply fill out the form on this page.