Fannie Mae and Freddie Mac will set suggested loan limits for those looking to take out a loan for a mortgage or other expense. As of 2021, the limit in the continental United States, including Washington, D.C. and Puerto Rico, is $548,250, while the limit is $822,375 in Alaska, Hawaii, Guam and the U.S. Virgin Islands. Any loan that exceeds these limits is considered a “jumbo loan.” While these loans come with higher rates and a bit more risk, this option allows you to borrow more and secure a home you may not have been able to otherwise.
Whether it’s a conforming loan or a jumbo loan, Aaron Hinson and the Luna Lending team can help you decide what loan is the best option for you. It may be your first home or your fifth home — we’ll still be available for you with our expert insight every step of the way, from finding out if you’re qualified to signing off on your new home.
Before we start anything, you can use our jumbo loan qualifier tool to see what you are eligible for. Based on your financial history and current situation, we can evaluate the options available to you, including any rates and terms that might play into your decision. After measuring the advantages and drawbacks of each loan option, we want you to feel confident that you are choosing the right one that will help you comfortably settle into your new home.
While the high rates and risk might be a dealbreaker for many borrowers, there are still plenty of benefits that jumbo loans offer. One of the most notable includes having options up to $3 million in financing. You may also avoid financial penalties for the large amount of money you will be borrowing, assuming mortgage rates are low. If a jumbo loan sounds like something that fits your situation, use our free qualifier tool today to see if you are eligible!