A jumbo loan is a loan in which the amount borrowed is greater than the loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC). A loan amount greater than $417,000, is considered a jumbo loan.
Advantages:
- Able to finance a home that is over the maximum loan amount of $417,000 established by Fannie Mae and Freddie Mac
- Enables a borrower to purchase “more house”