Jumbo loan limit
Jumbo mortgage loan limits
jumbo mortgage is a home loan that exceeds the typical lending limits
of the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal
National Mortgage Association (Fannie Mae), the Federal Housing
Administration (FHA) or the Veterans Administration.
Loans sold to either Fannie Mae or Freddie Mac are called conventional loans or conforming loans because the mortgage amount “conforms” to the underwriting guidelines and lending limit of these companies. The jumbo loan limits are established by Congress each year. The Fannie Mae jumbo loan limits 2016 for most US counties are:
Loans above the following limits are called jumbo loans
- 1-unit home - $417,000
- 2-units (duplex) - $533,850
- 3-units - $645,300
- 4-units - $801,950
2016 Conforming jumbo loan limits
Fannie Mae and Freddie Mac loan exceptions are known as “conforming jumbo” loans, because they meet the underwriting guidelines for high cost US counties even though they exceed the customary loan limits. Read more
Jumbo mortgages have a higher interest rate that loan amounts below the jumbo limit. For some borrowers, the way to reduce the loan amount below the jumbo limit is to take on a second mortgage with the first mortgage. The second mortgage is the difference between the first mortgage and the jumbo limit. For example:
Sales Price - $500,000
First mortgage - $417,000
Second mortgage - 83,000
The second mortgage rate is usually higher than the first mortgage, but the combined payment can come in lower than a single mortgage payment at the jumbo interest rate, depending on the interest rates, second mortgage terms and loan amounts
2016 FHA jumbo loan limits
FHA also has a lending limit for most US counties. The FHA jumbo
loan limits are generally less than the typical conventional loan
But, as with conventional loans, there are exceptions to the 2016 FHA lending limit. Loans that exceed theses limits are called jumbo FHA loans. The FHA jumbo loan down payment is 3.5%. Read more about FHA Loans
The current FHA loan limits for most
US counties are as follows. FHA loans greater than these lending
limits are known as FHA jumbo loans.
- 1-unit home - $271,050
- 2-units (duplex) - $347,000
- 3-units - $419,425
- 4-units - $521,250
2016 FHA High Cost County Limit Exceptions
2016 FHA Lower Cost County Limit Exceptions
The lower cost county list contains the US counties that are
greater than $271,050 (typical limit for a one unit or single family
FHA Closing Cost Calculators
The United States Department of Agriculture (USDA Home Loan)
it or not, there is no maximum loan amount for a USDA home loan
and the USDA home loan does not require a down payment, however,
there are income limits; and that’s the reason why this home loan
does not have a maximum loan amount (USDA jumbo loan).
USDA income limits vary from state to state and county to county. Read more.
Jumbo VA loan limits
Veteran’s Administration does not limit the amount of money you
can borrow from the bank. However, the VA does limit the amount
of VA insurance liability, which in turn, usually affects the amount
of money the bank will lend you. The size of the VA loan varies
by US county. VA loans exceeding the customary lending limits are
called VA jumbo loans. Read more
The customary loan amount the VA will guarantee is 417,000, however, the guaranteed loan amount is higher in many US counties.
PLEASE NOTE: For purposes of determining the VA guaranty, lenders are instructed to reference only the One-Unit Limit column in the FHFA Table “Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar year 2016 and Originated after 10/1/2011 or before 7/1/2007”.
► 2016 VA Loan Limits (Effective January 1, 2016)
► 2015 VA loan limits.pdf (the VA only recognizes the the single family (one unit) loan amount)
Veteran Home Loan Calculators!
Jumbo Loans Questions & Answers
Click on the question below to reveal the answer
► Are jumbo loan rates higher?
► FHA jumbo loan down payment
► Is there a jumbo VA loan?
► Is there pmi on a jumbo loan?
► What is a jumbo FHA mortgage?