A Jumbo loan is the name of any loan that exceeds conventional loan limits. In most areas maximum conventional loan limits $424,100.00. In higher priced ares those loan limits can be as high as $721.050.00. Therefor any loan that exceeds the maximum conventional loan amount is considered a Jumbo Loan.
Jumbo loans loans come in two varieties just like every other type of loan, fixed rate mortgages and Adjustable Rate Mortgages (ARM's). Jumbo loans generally have stricter underwriting requirements due to the increased risk of a higher loan amount.
Every bank, mortgage company and lender will all have different underwriting guidelines for Jumbo loans because there is no single or group of organizations that set underwriting guidelines, insure and service Jumbo loans the way Fannie Mae and Freddie Mac do for conventional loans and HUD does for FHA loan.
Cornerstone Mortgage has a wide range of investors to meet all of your Jumbo needs.