What is a jumbo loan?
A jumbo loan is, essentially, another name for a non-conforming mortgage, which are loans that do not conform to requirements set by major mortgage loan companies Freddie Mac and Fannie Mae. Jumbo loans usually require a higher down payment than conventional loans.
These loans exceed loan limits set by the government, and if you are purchasing a property that calls for a loan higher than the local limit, this is the only time you would need to consider taking out a jumbo loan for a home in Southern California. When a loan amount exceeds the acceptable limit to be considered as ‘conforming’ to Fannie Mae and Freddie Mac guidelines, it is considered a Jumbo Loan.
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