Types of Loans: Jumbo Loans

LONG BEACH JUMBO LOANS

“Ben Bernanke the former Federal Reserve chairman was denied his loan application”, Fox News (Oct 2014).

Do you need a jumbo mortgage in Long Beach? If you are thinking of buying a large family home, you may need to do just that. If you have a more modest four-bedroom house in mind, however, you may think you can get away with a standard conforming conventional loan. You would be surprised how many Long Beach homes fall under the jumbo loan umbrella, however.

What is a Jumbo Loan?

  • A jumbo loan is also called a “nonconforming” loan, because it is any conventional loan which does not conform to the lending limits set by Fannie Mae and Freddie Mac. In most parts of the country (including California), that lending limit is $417,000. In some states and high-cost counties, however, the lending limit is higher. Here in Los Angeles County, the conforming loan limit is $625,500.
  • Jumbo loans often carry more stringent underwriting guidelines than conforming loans, and may also carry higher credit score requirements. For that reason, they carry a downside for you as the buyer. Finding friendly terms can be a challenge, and signing on a jumbo loan may carry a higher risk for you. You may find many hidden costs and fees standing in your way. You also may have a hard time qualifying if you have a lower credit score or have had a short sale.
  • That is why it is essential not to try to go it alone when you are shopping for a Long Beach jumbo mortgage.

“For assistance in choosing the right loan program for your unique situation call us for a free consultation.”

Have questions about the Jumbo Loan process in Long Beach, or want to get started? Give us a call at (562) 437-5585 ext 1 or email us at nicoletas@allwaysfinancial.com to discuss your needs.

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