Because jumbo loans go beyond the conforming mortgage restrictions, they are generally described as non-conforming loans. The government won’t guarantee or service jumbo mortgage loans, so mortgage loans supported by the government construction government (i.e., FHA loans) must meet with the complying financing limits.

In addition, the federally supported financial agencies Fannie Mae and Freddie Mac won’t provider or guarantee these financial loans. Since loan providers can’t offer jumbo financial loans to Fannie or Freddie, they’re seen as much more dangerous mortgages and usually bring greater home loan costs.Continue reading→