Don’t Let Jumbo Loan Costs Stop Your Dream Home Purchase

A jumbo loan is a loan that exceeds the bounds of a traditional loan for one’s mortgage. There is a cap in most counties in the United States of $510,400 for a mortgage loan, but some people need more money than that to purchase the home that they want.

These loans are not backed by Freddie Mac or Fannie Mae, and that makes them considerably more risky for the borrower. That being said, the only people who can and should apply for a jumbo loan are those who have considerable income and resources.

The required credit score for this kind of loan is at least 700, but it can be as high as 720 depending on the exact lender and the preferences that they have regarding who they lend to. Only highly qualified buyers need apply.