In the Bay Area, many of us hear the term, “Jumbo Loan” due to the high cost of buying a home. However, most individuals and families do not understand what this term means. In the US, there are two main entities (Freddie Mac and Fannie Mae) that provide mortgage lenders with security, like a guarantee, where they purchase mortgages. These groups provide a cap in the Bay Area for such protection up to $636,150. Such loans are considered “Conforming”. Any loan amounts above this are viewed as Jumbo Loans. Thus, with the average price of homes in the East Bay approaching or exceeding $1 million, it is very common for many individuals to use a Jumbo Loan to obtain their home and even “Super Jumbo Loans”. Such mortgages can come with higher interest rates, larger down payments, and greater credit scrutiny. If you have questions, feel free to ask me. I’m Karen, your mortgage genie whose helping you find the home of your dreams.
(925) 648-0981
