Jumbo Home Loans for High-Value Homes
Jumbo home loans are the way to finance a purchase with a value above federal standards. The conventional conforming loan limit is $484,350. For a home with a purchase price above this limit, a jumbo loan is needed.
It’s true that a jumbo home loan might be the route to go if you were trying to buy a castle, but in some areas, with high housing costs, a jumbo loan might be needed to purchase a relatively modest house. VA Home Loan Group can help the whole spectrum of these customers.
Non- Conforming Mortgages
Jumbo home loans (aka: non-conforming mortgages) are those that exceed the conforming loan limit for the location of the property. A single-unit property in most U.S. counties has a federal cap of $417,000. In higher cost areas that cap starts at $625,500.
General Loan Limits for 2019
The general loan limits for 2019 has increased and apply to loans delivered to Fannie Mae in 2019 (even if originated prior to 1/1/2019). Refer to Lender Letter LL-2018-05 for specific requirements.Maximum Loan Amount for 2019
|Units||Contiguous States, District of Columbia, and Puerto Rico||Alaska, Guam, Hawaii, and the U.S. Virgin Islands|
Maximum Loan Amount for High-Cost Areas for 2019
+A number of states (including Alaska and Hawaii), Guam, Puerto Rico, and the U.S. Virigin Islands do not have any high-cost areas in 2019.
|Units||Contiguous States, District of Columbia+||Alaska, Guam, Hawaii, and the U.S. Virgin Islands|
2019 Loan Limits Overview
- Loan limits increased for all but 47 counties across the country, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
- In those 47 counties, the limits remained unchanged.
- Loan limits did not decrease anywhere in the US and its territories.
The Advantages of a Jumbo Home Loan
Using a jumbo home loan allows you to avoid making an enormous down payment to reduce your balance to a conforming level. While a higher interest rate usually comes along, the convenience is worth it.
To learn more about jumbo home loans, please contact VA Home Loan Group experts. Our team is at your disposal.