How is Jumbo Loan different than Freddie Mac and Fannie Mae loans?
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daron
Apprentice
Joined: 01 Aug 2007
Posts: 1
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 Posted: 09/08/08 - 09:55 Post subject: |
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| Hello there people. I am interested in getting a mortgage loan in order to buy some property, and I came across a type called Jumbo Loan. I am not exactly familiar with it, so it would be great if you could give me some information. How is Jumbo Loan different than Freddie Mac and Fannie Mae loans? |
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olivier
Apprentice
Joined: 22 Jul 2007
Posts: 2
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| Posted: 09/20/08 - 05:57 Post subject: |
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| Hello there. As you may know, word jumbo usually refer to something of enormous size. The same applies to mortgage loans. Jumbo loans are loans which exceed the guidelines of government agencies such as Fannie Mae or Freddie Mac. So, it is their size that makes them different than Freddie Mac and Fannie Mae loans. |
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aluino
Apprentice
Joined: 31 Jan 2005
Posts: 1
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| Posted: 10/02/08 - 01:58 Post subject: |
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| Hello to you too. Well yes; Jumbo Loan is different than Freddie Mac and Fannie Mae loans in term that it is a non confirming loan. It means that it does not follow the rules set up by appropriate government agency. Jumbo Loans are usually loans which have value over the limit of 417 000 dollars. Everything that is above that sum, agencies won’t purchase. Reason for that is that Jumbo Loans present greater risk for the agency. |
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