FHA Jumbo Loans

Since 1934, the FHA has been helping Americans realize the dream of homeownership by making loans much more affordable and readily available. They have achieved this by offering loans to qualified citizens that require as little as 3% for the down payment. With an FHA Loan, the borrower also won’t have to pay private mortgage insurance (PMI) and can take advantage of competitive interest rates.

Loan Limits

The FHA sets a limit on how much they are willing to insure. This number depends on the county you live in, and how big your family is. In recent years, this number has increased dramatically, making it possible for people to buy family homes in expensive cities and counties and still only have to provide a minimal down payment. Some of these loans are big enough to qualify as a “jumbo loan.”

What is a jumbo loan?

A jumbo loan is a industry term for any loan in excess of $417,000. In most counties, the loan limit for family houses now exceeds this amount, making it possible for qualified borrowers to receive a jumbo loan and still not have to pay more than 3.5% for the down payment on the house. There are some counties where the limit is even higher than this amount, and these big loans are considered “super jumbo loans.” Most lenders are hesitant to issued jumbo and super jumbo loans as they can be quite risky. However, with an FHA Loan you are insured by the Federal Government, which means even with a jumbo loan you will still be able to take advantage of all the benefits that make FHA Loans simple and affordable.

Should I apply for a jumbo loan?

If you find a house that suits your family and is under the county’s loan limit, you should definitely consider applying for a jumbo loan. Keep in mind, however, that you will still need to supply your credit score and debt-to-income ratio in order to qualify for the loan. For jumbo and super jumbo loans, you may be required to supply a slightly larger down payment on the house, but this number will still be lower than if you applied for a conventional jumbo loan.

Get pre-approved Today!

To see if you can get pre-qualified for a jumbo loan, take a minute to fill out our online form. It’s fast, secure and 100% free with no obligations.

How to Apply for an FHA Loan | fha interest rates | fha insurance | what is an fha loan