What is a Jumbo Loan?
A jumbo loan is a mortgage loan that exceeds conforming loan limits set by the Office of Federal Housing Enterprise Oversight. Conforming loan limits cap the dollar value on loans that are backed by a government-sponsored program or enterprise.
A mortgage doesn’t have to be 7 digits to be called a jumbo loan. A loan amount $1 over the loan limit is defined as a jumbo loan. Currently in Rocklin, CA the conforming loan limit is $552,000. Thus, any loan over the $552,000 amount will be considered a jumbo loan.
Jumbo loans will typically require 20% down or more and the credit and reserves requirements can be stricter. The obvious benefit of a jumbo loan is the ability to borrow more money.
Every borrower’s situation is different and unique so the best option is always speak to a professional to find out what your options are.