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Jumbo Loans

What is a Jumbo Loan?

The definition of jumbo loan varies from state to state, so when you begin your home buying process, you will need to research jumbo loans in your local area.

Generally, a jumbo loan is a non-conventional loan that major agencies, such as Freddie Mac or Fannie Mae, will not buy and trade because of the cost. When a lender offers a mortgage loan, they usually do not keep the mortgage loan for the duration of the time it takes you to pay the loan back. Instead, they sell the loan on the secondary market to agencies such as Freddie Mac and Fannie Mae.

These two major institutions are very powerful in the mortgage market, and most lenders want to be able to sell mortgage obligations to them in order to free up cash, or to obtain liquidity to do more business. Since a jumbo loan fails to qualify for Fannie Mae and Freddie Mac guidelines, borrowers must often pay extra to help lenders countenance the extra risk they encounter for financing it.

Jumbo loans were designed to help high-income individuals afford luxury homes or smaller homes in highly desirable areas. However, when home prices rise and houses become more expensive, more and more middle-income Americans have had to turn to jumbo loan financing to buy their dream homes.

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  • Patti was extremely helpful in determining whether a refi would be beneficial to our family. I never felt pressured in any way to move ahead with a refi decision. She laid out the options for us, and when we decided it was in our best interest, her team processed the refi quickly and efficiently. The process was much easier than we expected. Lauren
  • We are very pleased with the service we received from Fred Arnold and Tara. They were diligent in completing our refinance when previous efforts with a big bank left us very disappointed. We can't recommend the team at American Family Funding enough!

    Thanks guys!!

    Michael
  • Rhona's very thorough and personable. My wife and I had such a great experience we used her again for our refi.
    Jeremy
  • Absolutely outstanding. this was my second purchase and I wished I had meet Jilyn on the first mortgage. She is the best loan officer I have dealt with.
  • I recently refinanced my home with Patti Handy and I must say the process was completely painless. She was honest, upfront and very forthright and she had concerns about my loan. We worked through it very quickly and easily and got it done in a very timely manner. I highly recommend Patti Handy- she is amazing!
  • Patti is very knowledgeable, compassionate, flexible, conscientious and just a very nice person!

    Lisa

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