Prime Jumbo
- claribethvalencia
- Mar 31, 2023
- 1 min read
Prime Jumbo is a type of mortgage loan that is offered to borrowers with excellent credit, high income, and substantial assets. The loan amount for Prime Jumbo loans exceeds the maximum limit set by Fannie Mae and Freddie Mac, which is $548,250 in most areas of the United States in 2021.
Prime Jumbo loans are generally considered a type of non-conforming loan, meaning they do not conform to the guidelines set by Fannie Mae or Freddie Mac. As a result, lenders may have more stringent requirements for borrowers seeking a Prime Jumbo loan, such as a minimum credit score of 700, a debt-to-income ratio below 43%, and a minimum down payment of 10%.
Interest rates for Prime Jumbo loans may be higher than those for conforming loans, as they are considered higher-risk loans. However, borrowers with excellent credit and a substantial down payment may be able to secure a competitive interest rate.
Prime Jumbo loans are typically used to purchase high-end properties or to refinance an existing mortgage on a luxury home.
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