Jumbo Loan – What is it?

Keelin Billue Gubbels Chicago Real Estate, Mortgage, New Home Buyer

Just like it sounds, a jumbo loan is just bigger.  A loan is considered jumbo if it exceeds the conforming high-balance loan limits set by Fannie Mae and Freddie Mac.  The current conforming loan limit for a single-family home is $417,000 in Illinois.

Jumbo mortgage loans are considered higher risk for lenders due to their larger size.  The idea is that if a jumbo mortgage loan defaults, it may be harder to sell a luxury home quickly for full price.

It’s a big deal because it is literally a bigger deal.

Lenders may require a higher down payment from a jumbo loan borrower. Many lenders may require two appraisals on a jumbo mortgage loan.

If you have any questions on jumbo loans, just give us a call at 312.642.7979.