Jumbo Loan Size:
Different Jumbo Loan Size:
In the United States housing market their are a variety of different loans and mortgages for individuals to choose from when purchasing real estate. A Jumbo Loan is one such option, but even with Jumbo Loans there are several smaller niches that the loan can qualify to be referred to, which come with different qualifications.
As lenders can define their terms for what constitutes a jumbo loan there is not always a hard and fast guideline when it comes to proper separation but most lenders agree on at least three classifications: jumbo loans, super jumbo loans, and maximum super jumbo loans.
Difference in Jumbo Loan Size:
A Jumbo loan is the easiest to define as multiple lenders are engaged in lending on this level. Most definitions of a jumbo loan size follow the guideline of conventional conforming loan limits, these conventional loans are defined by two government sponsored agencies known as Freddie Mac and Fannie Mae as such; a conventional loan is any loan which these two agencies will either purchase or insure and is often limited to any sum under $417,000 for single family unit homes.
So when deciding the jumbo loan minimum limit this concept is normally the deciding figure. From there the next biggest increment of a jumbo loan is a super jumbo loan. With the jumbo loan limit is considered to end close to $625,000, except in the case of a high cost area, a super jumbo mortgage is any loan with a equity higher than $650,000 although once again this is up to the discretion of the lender at the time of the loan.
The last jumbo loan size is somewhat lofty as the cut off is generally considered to be $1,500,000 for a super jumbo loan. This makes a maximum super jumbo loan begin at this minimum and continue up into the ten million to the twenty million range, naturally these are far and few between as many houses within this range are not common place.