California Jumbo Loans

A jumbo loan is a loan whose amount exceeds standard Fannie Mae loan limits. The Federal National Mortgage Association is the agency that buys mortgages from banks and other lenders. By purchasing loans, they cycle money back into the lending community, thereby creating liquidity in the lending market.

Congress set an upper limit on the mortgage amounts that can be acquired by Fannie Mae for a single-family home. Any loan in excess of this amount is considered a jumbo or non-conforming loan, and cannot be funded by Fannie Mae. As a result, these loans usually carry higher interest rates.

Historically, few lenders granted jumbo loans because they are not backed by the government. But as home prices began to rise, the need for jumbo loans rapidly increased. Now most lenders offer jumbo loans, but have more restrictions on them, in addition to higher interest rates.

U.S. Home and Loan strives to be more than your mortgage provider. We offer comprehensive real estate services which include advice, guidance, and access to our network of Realtors. We believe that our most informed customer is our most satisfied customer. In furtherance of this, we offer our years of mortgage and real estate experience for your perusal.

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