Jumbo loans have higher loan limits than others and are also known as non-conforming loans because they don’t fit within the normal parameters set by Fannie Mae and Freddie Mac.
The loan amount that makes a loan Jumbo varies by location. Non-conforming loans tend to have some flexibility that conforming loans don’t have. Those include:
- Less than 20% down with no mortgage insurance
- Low down payment options
- Flexible income calculations
- Credit score requirements typically aren’t any stricter than non-conforming loans
- Vast array of Jumbo loan programs to choose from
- Financing up to $5 million
Qualification criteria and terms vary.