A quick definition of Jumbo loan states that these are those loans that do not follow the guidelines set out by Fannie Mae (Federal National Mortgage Association). The reason behind this is that the prices set out by the two companies Fannie and Freddie are often too high for a borrower to get through. To help such people finance a home at an affordable price, Jumbo loan was initiated that is a non-conforming residential loan that exceeds the limit and guidelines of Fannie Mae.

The jumbo loans have been set every January, since the January of 2006, with the amount of $417,000 for a single residence home and a for a two unit property it totals up to $533,850.

People who liked this Post also read

• FACTS to Know about Home Loan Modification Program
  If you are a financially troubled mortgage holder and find it is difficult to pay off your mortgage payments then you can take help from a home loan modification program. There are certain important facts about this programs which you should be aware of....
• Greater The Mortgage, Greater The Panic
  A big loan is known as ‘jumbo loan’ and it is carelessly taken by the government and a few lenders also these days....
• U.S. Mortgage Rates Fall for First Time in Four Weeks
  For the first time in a month this week, mortgage rates for 30-year fixed U.S. home loans fell, as the Federal Reserve pledged to keep its standard rate near zero....
• Best Mortgage Deals
  One should always try to find the best mortgage deal. There are various ways through which one may find it. Internet is a great place to gather information about loan packages. Search from first few websites. Ask relative or friends before buying a home....
• Best Ways For Funding For Dream House
  One can easily determine the interest rates directly from a borrower's credit score. It is highly recommended that a borrower should get credit reports from all three nationally recognized credit reporting agencies before they go for shopping around for d...