2021 Loan Limits on Jumbo Mortgages

A jumbo loan, also called a non-conforming loan, is a mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA).

What's a Jumbo Loan?

Like the name indicates, a jumbo loan is a larger loan that provides a solution for borrowers financing homes priced higher than the conforming loan limit for their county or state. Unlike conventional loans, jumbo loans aren't backed or sold by Fannie Mae or Freddie Mac, so they do not have to adhere to the limits set by the FHFA.

Jumbo loan terms vary. They can feature either a fixed rate or an adjustable rate. There's also the option of a jumbo FHA loan or a jumbo VA loan.

How Does a Jumbo Loan Work?

Because jumbo loans are not backed by Fannie Mae or Freddie Mac, lenders are taking on more risk. To help offset that risk, these loans typically have stricter approval guidelines compared to conforming loans. Jumbo loans often require home buyers to make a higher down payment and have more cash reserves on hand.

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Limits for Jumbo Loans

Jumbo loans can be used to finance new homes with purchase prices well into the millions. There's no industry-established loan limit for jumbo or non-conforming loans, but that doesn't mean the sky is the limit! Most individual lenders will have their own guidelines for jumbo loan limits - often $1 million to $2 million.

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Loan Limits by State

The conforming loan limit for 2021 in most areas in the United States is $548,250. This limit, however, is greater in high-cost areas and competitive real estate markets. These high-cost markets include Hawaii, Alaska, Guam, New York, the U.S. Virgin Islands, and Los Angeles. In these markets, the maximum conforming loan limit for 2021 is $822,375. To find out the conforming loan limit for your state, click here.

Is It Harder to Qualify for a Jumbo Loan?

Since there is more risk involved, jumbo loans have stricter approval guidelines compared to conventional loans. If you want to qualify for a jumbo loan, count on needing a good credit history and a higher credit score. You'll also need a larger down payment and a lower debt-to-income ratio. Your jumbo loan rate will be determined by your credit and the amount of your down payment.

How to Apply for a Jumbo Mortgage

Ready to take the first step on your jumbo loan? Speak with one of our experienced loan experts to start the application process. While jumbo loans tend to have stricter requirements, jumbo mortgage rates are often similar to rates on conforming mortgages.

Whether you're a first-time home buyer, a repeat buyer, or thinking about a refinance, our loan experts can compare today’s jumbo mortgage rates and help you find the most affordable loan option for your unique needs. Start your loan application now!

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