There are many mortgage products available on the market to those who are seeking a home loan to fund their upcoming home purchase. For instance, there are interest only jumbo loans, conforming fixed rate mortgages, and adjustable rate mortgages, or ARMs. The lingo can get a bit confusing. However, home loans can be broken down into two simple categories: conforming home loans, and non-conforming home loans.
Conforming Home Loans
In essence, conforming loans are government-backed mortgages. These home loans are underwritten by government entities including Fannie Mae and Freddie Mac. Since these home loans comprise a large portion of the mortgage product market, they set the standard on many variables that surround mortgage lending. For instance, client home loan legibility, mortgage interest rates, and the cap on conforming loans are all established due to conforming home loans. The current cap in most United States areas for conforming loans is $417,000 of the loan amount.
Non-Conforming Home Loans
Non-conforming home loans simply aren’t backed by government underwriters. Many of these loans require mortgage insurance to insure the lender against a borrower defaulting on his or her loan. Many of these home loan options are ideal for individuals who have a poor credit score or marred credit history, those with too much debt or too high a debt-to-income ratio, and those who can’t put much money down on their home purchase. Often, these loans are coupled with high mortgage rates.
Now, there’s a sort of sub-category to non-conforming loans. Jumbo and super jumbo loans are non-conforming loans that simply exceed the aforementioned $417,000 loan limit. These loans are generally more difficult to obtain than small non-conforming home loans. Let’s look a bit further into jumbo and super jumbo loans, as they are our specialty mortgage product here at MortgageBase.
Our Jumbo & Super Jumbo Loans
Again, MortgageBase specializes in jumbo and super jumbo loan products, including interest only jumbo loans. These loans exceed the $417,000 loan limit of conforming loans. Super jumbo loans are loans higher than $1,000,000; and MortgageBase can create loan products up to $10,000,000! These particular loans are ideal for individuals who can put a significant portion of money down on their home. Moreover, it’s ideal to have steady income to cover the larger monthly payments than smaller loans.
If you’re curious about any of our products, feel free to browse through our all products page; or feel free to get in touch with us if you have further questions surrounding our home loan products. Remember, we’re your resource for home loans, and we specialize in building jumbo and super jumbo mortgage packages.