Jumbo Hard Money Loan
A jumbo loan is a loan which exceeds a certain limit set by the banking industry on what can be covered by government backing, normally through the institutions of Freddie Mac and Fannie Mae, but what about when the jumbo loan is also a hard money loan meaning it already falls out of the jurisdiction of the banking industry as you are now going to an outside lender?
As we already know a hard money loan is a loan generated by a lender who is apart from the normal means of acquiring a loan as they have no affiliation with them whatsoever. This means that the lender in this case gets to decide if the term jumbo loan is even to be used, and if it is to be used what exactly qualifies as a jumbo loan.
Because of the quick turn around for hard money loans, meaning the money is normally due back faster then a conventional loan, most jumbo hard money loans are going to be acquired through businesses which need to acquire the capital in a large sum quickly and cannot do so themselves.
For these exact same reasons a individual is not likely at all to receive funding through a jumbo hard money loan as the sheer size of such a loan is a lot to entrust to a single person. And this single person has more of a risk then a company would.
In short a jumbo mortgage loan is a loan designated by an outside source, other then government insured or allied banks which is then classified as jumbo by the same lender who is also determining the amount of the loan as well as the amount of the interest and downpayment. THis means that they decide what is and what isn’t a jumbo hard money loan, as well as who can access them.