Jumbo loan limit

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Jumbo mortgage loan limits

Fannie Mae logoA 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.

Freddie Mac logoLoans 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:

Common Lending Limits For Most US Counties - there are some county exceptions.
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 Conventional County Lending Limit & Jumbo Loans

► 2015 Conventional County Lending Limit & Jumbo Loans

2016 FHA jumbo loan limits

FHA logoThe FHA also has a lending limit for most US counties. The FHA jumbo loan limits are generally less than the typical conventional loan limits.

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

The high cost county list contains the US counties that are at or greater then $625,000.
2016 FHA loan limits in high cost counties (pdf)
2015 FHA loan limits in high cost counties (pdf)

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 residence).

2016 FHA loan limits in lower cost counties (pdf)
2015 FHA loan limits in lower cost counties (pdf)

2016 FHA County Loan Limit Increases (pdf)

FHA Closing Cost Calculators

The United States Department of Agriculture (USDA Home Loan)

USDA logoBelieve 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.

USDA Mortgage Loan and Closing Cost Calculator

Jumbo VA loan limits

Veteran's Administration logoThe 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)

Current Jumbo Mortgage Rates

Veteran Home Loan Calculators!

Jumbo Loans Questions  & Answers

► Are jumbo loan rates higher?

Yes. Because of the size of the loan and potential loss with a default, lenders usually require a higher interest rate due to the risk.

► FHA jumbo loan down payment

No additional down payment is required for a jumbo FHA loan.

► Is there a jumbo VA loan?

Yes. There is no lending limit with VA loans, however, there is a guaranty limit. The US government "guarantees" VA home loans up to a set amount that is authorized each year by Congress. This means that any loan beyond the guaranty limit, currently $417,000, requires a down payment from the veteran and the loan is know as a jumbo VA loan . . . because it exceeds the current guaranty limit. See VA Loan Calculator

► Is there pmi on a jumbo loan?

Yes. Conventional jumbo loans require private mortgage insurance (pmi) if the down payment is less than 20%. There is no "monthly" pmi or mip on VA jumbo loans, and there is monthly and upfront mortgage insurance on FHA jumbo loans.

► What is a jumbo FHA mortgage?

The FHA mortgage limit is established by Congress each year. The current loan limit is $271,050 for a single family home or condominium. Congress allows higher FHA loan limits in some, high cost US counties. Loans that exceed the customary loan limit are called jumbo FHA mortgages.