Jumbo loans are too large to meet the guidelines of a conforming loan.
There are many advantages and disadvantages when dealing with jumbo loans. Jumbo loans gives borrowers the opportunity for a loan that may not qualify for a conforming loan. Jumbo loans are commonly used for luxury homes, as well as second homes.
It also simplifies home buying by allowing you to avoid taking out two or more loans. Unfortunately jumbo loans are more difficult to sell on the secondary market so most lenders will offset their financial risk by charging the borrower a higher interest rate than conforming and conforming high-balance home loans. They can also have stricter underwriting and larger down payment requirements.
Here at Jordan Pacific Mortgage, we have a special division that deals strictly with high balanced loans.
If you would like to learn more about jumbo/high balanced loans and how they work, we would be happy to discuss this with you.