Minnesota Jumbo loans

Jumbo Loans in Willmar, Minnesota

Jumbo loans are loans in which the amount borrowed exceeds the limit set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). A loan is considered jumbo if the amount is greater than $647,200.

Advantages

  • Borrowers can finance a home that exceeds the max limit of $ 647,200 established by FNMA and FHLMC.
  • Borrowers can purchase “more house,” such as luxury or higher-priced properties.
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What's the Difference Between Jumbo and Conforming Loans?

We know that the amount of a Jumbo loan is larger than conforming loans. Here are some key reasons for how else they differ:

  • Costs & Fees at Closing

    The fees and costs at the closing of a Jumbo loan require additional steps for qualification compared to conforming loans because of the amount.

  • Size

    Conforming loans have a limit of $ 647,200 in most counties and $ 970,800 in more expensive counties, while the amount you can borrow for a Jumbo loan is more open-ended.

  • Interest Rate

    Interest rates for Jumbo loans are typically higher compared to conforming loans due to the larger amount and risks involved. However, it’s possible to secure a rate for a Jumbo loan that is on par with a conforming loan by shopping around and comparing rates.

  • Down Payment

    For conforming loans, down payments are generally more affordable. You can choose from percentages as low as 3% of the value of the assessed sale price of the home. Down payments for Jumbo loans can start at a minimum of 10% of the property sale price, while 20% down is the most common. Note: if you put less than 20% down, you are required to have Private Mortgage Insurance (PMI)