Austin Jumbo Mortgage Loans
Joel Richardson offers the following answers to frequently asked questions about jumbo mortgage to help you with your jumbo mortgage. Please feel free to use this resource as you begin to research your non-conventional or jumbo mortgage needs.
What is a Jumbo Mortgage?
Another term for jumbo mortgage is ‘non-conventional’. Quite simply, conventional mortgages are underwritten to federal government guidelines whereas non-conventional loans are underwritten to individual bank guidelines. Investors can be assured of the quality of a conventional loan based on standardized qualifications and the underlying paper is easily sold. However, non-conventional loans typically are serviced and held by the bank that originally underwrote the loan as there is no set of standardized qualifications across all lenders.
Is there a loan size cut-off?
In Texas, a single-family residence has a loan cut-off of $548,250 FNMA & FHLMC set these limits each December for the coming year. It is determined by state and sometimes metropolitan areas (MSA). Be careful, that is not the house price, but the loan amount. We’ll talk about strategies down the page.
Is there rate differences between jumbo and conventional?
Typically, jumbo rates are higher than conventional rates. I’ve seen them 1% apart and I’ve seen them exactly the same. On average, expect 0.5% higher in rate.
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