Jumbo loan

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Jumbo loan

Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or securitization by the federal agencies.

Jumbo Loan

1. A mortgage loan so large it exceeds the limits for securitization by U.S. government mortgage banks. As such, a jumbo loan cannot be guaranteed or securitized by Freddie Mac or Fannie Mae. Because of this, jumbo loans carry higher credit risk and have historically been traded at a premium to conventional mortgages.

2. A loan of $1 billion or more.
References in periodicals archive ?
Because jumbo loans are more difficult to attain, have stricter credit requirements and associated interest rates, and because they are much riskier investments than conforming loans, some home buyers who purchase housing that falls outside conforming limits work towards getting the loan size down to standard limits, usually by increasing their down payment.
Jumbo loans exceed the value of loans that can be sold to Fannie Mae or Freddie Mac.
Board proposes new rules for reverse mortgages, jumbo loans
Sterling Savings Bank (NASDAQ: STSA) has started offering special programmes for jumbo loans and condominium financing in partnership with Golf Savings Bank.
AS THE MARKET FOR MORTGAGE-backed securities has dried up, so has that for jumbo loans, and that has siphoned dollars from Arkansas mortgage lenders' bottom lines.
General Motors' finance unit says that its mortgage division is hiring 1,000 new workers to handle refinancing and jumbo loans, according to Reuters.
Nationally, jumbo loans make up 16 percent of all mortgages, and in regions of the country where the majority of homes are priced well above $500,000--California, New York City and Washington, D.
Cambridge also reports that demand for multi-facility conventional jumbo loans for the acquisition or refinancing of independent living retirement apartments and assisted living facilities is on the rise.
Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming loans, but the spread between the two varies with the economy.
The statewide median is 14 percent higher than the loan limit, which means buyers are often pushed into more expensive jumbo loans.
Radian will continue to offer coverage on conforming jumbo loans to the current GSE high cost limits.