JUMBO HOME LOANS
JUMBO HOME LOANS
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. Homes that exceed the local conforming loan limit require a jumbo loan.
The Details
“Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit” (CLL) value. Loans above this amount are known as jumbo loans.
The national conforming loan limit value for mortgages that finance single-family one-unit properties increased from $33,000 in the early 1970s to $417,000 for 2006-2008, with limit values 50 percent higher for four statutorily-designated high-cost areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Since 2008, various legislative acts increased the conforming loan limit values in certain high-cost areas in the United States. While some of the legislative initiatives established temporary limit values for loans originated in select time periods, a permanent formula was established under the Housing and Economic Recovery Act of 2008 (HERA). The 2022 conforming loan limit values have been set under the HERA formula. See the latest Conforming Loan Limit values news release here.”