In most areas of the country, the upper loan limit for the Freddie Mac or Fannie Mae programs is $417,000. The specific maximum loan amount may be higher in Alaska, Hawaii and select counties in other states. What can you do if you need a larger loan that exceeds the limit for Fannie May and Freddie Mac loans? Some people will make a larger down payment so that their loan amount falls below the threshold. Others will apply for a jumbo loan. Another option is to max out the conforming loan limit and to apply for a second mortgage to cover the difference.

What to Expect from Your Next Jumbo Loan
Before deciding how to proceed with your loan request, you need to understand what a jumbo loan is. Generally, a jumbo loan will stand apart from a conforming loan in several key areas. Some of these are:

  • A larger down payment requirement
  • A higher interest rate
  • Different minimum credit score requirements

Primary Features of a Jumbo Loan with a Lower Credit Score
Obtaining a conforming loan with a lower credit score is relatively easy to do, but strict lending guidelines for jumbo loans often make it more difficult to get a jumbo loan with a credit score down to 660. Depending on the lender, however, you may still get approved for a jumbo loan with a 660 credit score. Often, the lender may follow other guidelines to compensate for the lower credit score. For example, requirements to compensate for a lower credit score could include:

  • An even larger down payment
  • A lower debt-to-income ratio
  • An even higher interest rate

Request More Details About Today’s Jumbo Loan Programs
At MortgageDepot, our loan representatives are jumbo loan experts. We are available to answer all of your questions about your financing options and to help you get approved for a jumbo loan with great terms. To learn more about your jumbo loan options, contact us today.

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