Jumbo loan

Also found in: Wikipedia.

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 ?
By taking a look at these limits, prospective borrowers will be able to determine what type of jumbo loan limits 2014 will see.
We started noting that the banks started dropping their jumbo loan rates from, say, half a percent over their conventional loan rates down to their loan conventional rates or even a little below," Gray said.
Case in point: The jumbo loan or any mortgage loan securitized by institutions other than Fannie Mae, Freddie Mac or Ginnie Mae, because the amount of the loan exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA).
These special loan programmes address current needs in the jumbo loan and condo financing market, which we feel are underserved markets right now,' said Greg Seibly, president of Sterling Savings Bank.
And the very few who will take a jumbo loan look for any reason not to take it, Sims said.
in Manchester, jumbo loan rates have historically remained between three-quarters and one full percentage point above rates on conforming loans.
If you have to stretch above that in places where homes are expensive you may need a jumbo loan, which cost more.
Anyone who can afford a Jumbo loan is qualified by any financial institution.
Company Introduces One Underwrite[TM], Lowers BPMI Rates and Expands Jumbo Loan Program
Rates on Jumbo loan products have become more competitive in relation to 'Non-Jumbo' loans.
Banks turned him down because they could not verify his income and because he scored below the 660 credit score needed for a jumbo loan.
For one, since jumbo loan limits are much higher, the lender assumes more risk, and thus requirements to qualify for a jumbo loan are often much more stringent than when applying for a normal complying loan.