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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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on Home Loans, Refinancing, or Reverse Mortgages


  • The service and personal attention was and continues to be extraordinary, that was beyond our expectations. The speedy service in which we were able to accomplish our goal, a home, for this we thank you Patti Handy. Irene
  • Rhona was excellent and provided updates from start to finish. She provided excellent support and guidance in handling our extenuating circumstances regarding our credit.
  • David and his team were amazing - very professional and they got it done. I highly recommend David for any loans.
  • Dave at American Family Funding is AMAZING!!! Always there to answer any questions you may have!!! I would highly recommend him to anyone looking to purchase a home or refinance!
  • We just wanted to say another BIG thank you.  Without all of your hard work, we would have never been able to do all this and we appreciate it so much.  Tomorrow we get the keys to our new house and we feel so very lucky!   Thank you for being here for us during this process and answering all those phone calls with questions we had.  You guys have been amazing and we are very grateful for such a great team that backed us! Jen and Jude
  • Fred Kreger was very supportive and helpful with process of refinancing my home. He also was patient and not pushy with helping me get the transaction taken care of. When all the paperwork was submitted the transaction was smooth and fast. Thank you Fred! Wendy

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