Jumbo loan

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 ?
BANKING AND CREDIT NEWS-June 15, 2017-Stearns Lending introduces jumbo loan program for million-dollar homes
For borrowers seeking a 30-year fixed jumbo loan that exceeds the conforming loan limits, the APR average is lower, at 3.
This study then examines the measure of income falsification around the jumbo loan cutoff points.
Homebuyers looking to obtain a larger loan will have to apply for a jumbo loan, which will most likely come with a higher down payment.
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.
PennyMac plans to tap the interest of investors in the jumbo loan market.
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.
This limit can put many buyers into a position of getting a jumbo loan, which typically boost the interest rate by a quarter to a half point.
Anyone who can afford a Jumbo loan is qualified by any financial institution.
With Eric Scholtz, our new Executive VP of Structured Finance, Stephen will help lead the growth of our jumbo loan conduit, which will enhance the development of loan solutions for consumers, third party originators and investors, ensuring the loans meet the recently released QM standards.
Jumbo loan rates fall below 6 percent [Business Week]