What is a jumbo loan?

A jumbo loan is a type of mortgage loan that is larger than the conventional loan limits set by the Federal Housing Finance Agency (FHFA). It is intended for higher-income borrowers who need larger loan amounts to purchase a more expensive home in North Carolina. The loan amount is typically higher than the FHFA limits, which are currently set at $510,400 for most of the state and up to $765,600 in higher-priced areas. Jumbo loans can be more costly for borrowers since they typically require a larger down payment and have higher interest rates than a conventional loan. The amount of the down payment will vary depending on the lender and the loan amount. Generally, a jumbo loan will require a down payment of at least 20%. Interest rates on jumbo loans tend to be higher than those for conventional loans because lenders perceive them as higher risk. Another thing to keep in mind is that jumbo loan lenders may require additional documentation including income and assets. This additional information is necessary to determine if the borrower can afford to pay back the loan. Jumbo loans can be a great option for those looking to buy a more expensive home in North Carolina, however, they should be carefully evaluated before entering into one. It can be beneficial to speak to a qualified mortgage lender to discuss the best option for your particular financial situation.

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What is a jumbo loan?

What is a jumbo loan?

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