A super jumbo loan is any loan that allows one to borrow more than an amount set by the Federal National Mortgage Association.
A Jumbo loan is a type of loan that exceeds the maximum loan amount. Jumbo loans also go by Jumbo mortgages. The maximum loan amount is set by the two largest market lenders, Fannie Mae and Freddie Mac. Jumbo loans generally have a higher interest rate than conforming loans. The “Jumbo status” goes into effect for any mortgage loan amount that is about $417,000. This is higher than previous years as I most likely due to the fact that houses nowadays cost $400,000 or more.
Jumbo mortgage loans are similar modern loan programs. They only require a
slightly higher down payment, generally an additional 5%. No-money-down is not available, but instead requires a minimum of 5% down payment in order to obtain a jumbo mortgage. Because these loans are so big, jumbo lenders typically offer variable loan programs to clients who take out these loans.
Due to the recent increase in housing prices, more and more people are applying for Jumbo loans. This is allowing Jumbo loan borrowers to pay back their loans back over a longer period of time. Jumbo loans can’t be guaranteed. Because of this, jumbo loans carry higher credit risk and have historically been traded at a premium to conventional mortgages.