- Jumbo loans, also known as non-conventional loans, are home loans that exceed the maximum loan limits set by government-sponsored enterprises (GSE’s) such as Frannie Mae and Freddie Mac. These loans are used to finance higher-priced properties that exceed the loan limits set for conventional loans.Jumbo loans allow borrowers to finance properties that require larger loan amounts, and usually have stricter down payment requirements compared to conventional loans. Borrowers are typically expected to have a strong credit history, a low debt-to-income ratio, and substantial financial reserves to demonstrate their ability to handle the larger loan amount.
It’s worth noting that jumbo loans can be complex and involve higher costs compared to conventional loans. Sterling Financial Services is experienced in jumbo loans and can provide guidance, explain specific requirements, and assist you throughout the application and approval process.