A jumbo mortgage, also called a non-conforming mortgage, is a home loan used to finance properties that are too expensive for a conventional conforming loan. This loan, as implied by its name, is larger than other loan types. The maximum amount for a conforming loan, while it varies county to county, is $510,400, as determined by the Federal Housing Finance Agency (FHFA).

California is classified as a high-cost state as real estate is valued higher. California is classified as a high-cost state as real estate is valued higher. The expanded conforming loan limits in such high-cost states can be as high as $765,600 and anything that exceeds that amount is considered a jumbo loan.

  Super jumbo loans have loan limits even greater than jumbo loans with limits generally starting at one-million dollars. Jumbo loans can be used on almost any type of property to include a primary residence, secondary residence, vacation home, and investment property, while super jumbo loans are typically used more on a primary residence.

The limits of a jumbo and super jumbo mortgage are higher, thereby increasing the risk associated with lending the money. These larger loans are also riskier for lenders because they are not guaranteed by Fannie and Freddie, meaning the lender is not protected from losses if a borrower should default.

As a result of the high risk, understandably, both jumbo and super-jumbo loans have more rigid requirements compared to a conforming loan. You will need to provide proof you can support the monthly mortgage payments with your income, give the required down payment, and demonstrate through required documentation you are a solid borrower. 

While the standard lender is capped at giving at most two million dollars, Focus Capital Funding gives loans up to fifteen million dollars. If you are a borrower needing a jumbo or super jumbo loan for the purpose of your primary residence or an investment property, contact us today at Focus Capital: 1-888-758-3004