Jumbo Loan
Jumbo loans are available to both purchase and refinance customers looking to obtain financing for loan amounts that exceed their area’s conforming loan limits as set by the agencies of Fannie Mae and Freddie Mac.
The average interest rate on a jumbo loan is typically higher than that of a conventional conforming loan due to the higher risk associated with the larger loan size. While many lenders did not offer jumbo financing in 2009 and 2010, many have since stepped up their offering of jumbo loans even though most jumbo mortgages will have to remain in the lender’s portfolio. The agencies do not buy jumbo loans.
Guidelines on jumbo loans are generally more restrictive compared to that of their conforming counter-parts. Loan To Value (LTV) limits will be lower while credit and FICO requirements will generally be higher.
Some general guidelines for jumbo loans include:
- Loan amounts up to $3 million (though LTVs will vary)
- Fixed rate and ARM programs are available
- Purchase, and Rate and Term and Cash-Out Refinance transactions are possible
Guidelines vary from program to program and must be confirmed by an On Q Mortgage Consultant for each individual mortgage application.
Contact an On Q Financial Mortgage Consultant today to find what options are available for you.

