QandAs: Loans

What is a Super Jumbo Mortgage?

Answer:
A super jumbo mortgage is a home loan that exceeds

$650,000. There is a variety of conventional home loan options available. Borrowers can acquire a conforming loan with a maximum purchase amount of $417,000, or a non-conforming mortgage loan with a purchase amount that exceeds $417,000.

The medium home price in many real estate markets is steadily increasing, and to qualify for a home purchase borrowers must acquire a jumbo or non-conforming mortgage. On the other hand, borrowers looking to purchase their dream home at a price that exceeds $650,000 must obtain a super jumbo mortgage.

Mortgage lenders offer various super jumbo mortgage packages. Some lenders offer mortgage loans up to $1,000,000, whereas others provide loan amounts up to $20,000,000. Because super jumbo mortgages are risky, many mortgage lenders cap the purchase amount, or limit the availability of a super jumbo loan. Before approving a loan request, mortgage lenders will consider the borrower's location. For example, a lender may quickly approve a super jumbo mortgage for a Chicago or New York City resident due to a high real estate market. Yet, the same mortgage lender may hesitate to approve a super jumbo loan to borrowers in rural or moderately priced regions.


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	What is Jumbo Loan? What are the different types of Mortgages? What is a Conforming Mortgage? What is a Non-Conforming Mortgage Loan? What is a 5/1 Jumbo ARM? What is a 7/1 Jumbo ARM? Why are Jumbo Mortgage Rates higher than Traditional Mortgages? What is 3/1 Jumbo ARM?