Jumbo Loans vs. Conforming Loans

The difference between a jumbo mortgage and a conventional loan is the loan amount.

Some of the other factors that distinguish jumbo loans from conforming loans include:

Down payment requirements

You can typically put down as little as 3% when you get a conforming loan.

But because government-sponsored enterprises don’t back jumbo loans, they usually require a higher down payment.

Potentially higher interest rates

Jumbo mortgage rates are typically somewhat higher than conforming loan rates, depending on the lender and your financial circumstances.

However, many lenders can provide jumbo loan rates comparable to those on conforming loans — and some may even offer marginally lower interest rates based on market conditions, so don’t forget to shop around.

Higher closing costs and fees

Because the loan amount is higher, you can expect to pay higher closing costs and fees.

But just like with interest rates, it’s important
to compare offers from
different lenders to make sure you’re getting the best deal.

Loan limits

The maximum loan amount for a conforming loan is $647,200 in most parts of the country.

But in high-cost areas like Hawaii and Alaska, the limit is $726,525.

Because some real estate markets are considerably more expensive than others,
the maximum loan size for conforming loans vary by county or parish.

Give me a call to get started financing the home of your dreams.

You can learn more about jumbo loans at: