Conventional and Jumbo Mortgages
Conventional Mortgage
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac typically require down payments of at least 3%. Borrowers who put at least 20% down do not have to pay mortgage insurance premiums, which are typically required with FHA loans.
Jumbo Mortgages
A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio and a higher credit score, a jumbo loan may be right for you. The limit on conforming loans is $453,100 in most areas of the country, but jumbo mortgages can exceed these limits.
Super Jumbo Mortgages
A Super Jumbo Mortgage is classified in the United States as a residentialmortgage or other home-equity secured loan in an amount greater than $650,000, although lenders differ on just what constitutes a super jumbo mortgage subject to their own internal investment criteria.