Visit now to learn the differences between jumbo loans and conforming loans and the use of loan limits, rates and lending standards.
A jumbo loan is a home loan for more than the conforming limit set by Fannie Mae and Freddie Mac. Interest rates on jumbo loans are.
Jumbo Loans vs. Conforming Loans. Jumbo loan rates are higher than conforming rates in most cases; Fewer banks and lenders offer jumbo loan financing; Underwriting guidelines are often more conservative for jumbos; Typically need a higher minimum credit score and larger down payment
A "conventional" (conforming) mortgage is a loan that conforms to established guidelines for the size of the loan and your financial situation. conventional loans may feature lower interest rates than jumbo loans, FHA loans or VA loans. Terms of these conventional loans typically range from 10 to 30 years.
They can either conform to government guidelines or they can be non- conforming. Jumbo mortgages tend to fall outside conforming loan.