Jan

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Super Jumbo Loan

Filed Under mortgage 

Editors Note: Due to the mortgage and credit crunch, Super Jumbo loans are more difficult to obtain. If you’re in need of a super jumbo mortgage in Denver, CO contact us to discuss your mortgage options.

Super jumbo loans are conventional home loans that exceed $1,000,000 (one million dollars)

The majority of super jumbo loans over 2 million dollars require at least two appraisals of the property being financed or refinanced.

The rate on a super jumbo mortgage is higher because the investor is taking on more risk. The risk of default on a super jumbo loan can more greatly affect the lender’s overall portfolio.

Lenders can require up to 2 separate appraisals for these types of loans.

Sometimes you can split the loan up into two separate loans making a first and a second mortgage on the property to accommodate lender requirements.

Many programs exist for borrowers looking for loans over one million dollars. A few of the options are 100% loans, stated income and no ratio options.

Because Super Jumbo Loans are not eligible to be delivered to FNMA or FHLMC, and can only be sold to other investors or held as portfolio loans, they always carry higher interest rates than Conforming loans.

A super jumbo mortgage is a mortgage request exceeding $650,000. A super jumbo mortgage typically has a rate 1/4% higher than your average jumbo mortgage.

Super jumbo loans will always be a little more restrictive on what they require, however funding is always available for any size loan. What sets the lending limits apart for these loans are the higher the amount you wish to borrow, the more restrictive the lending conditions are.

With the rising costs of homes, lenders have expanded their programs to meet the demand. Even with the low start rate Option Arm, you can finance up to 8 million dollars on some programs.

Although some lenders may define these loans as only those above $1,000,000 most lenders use the $650,000 breakpoint for pricing, marketing and underwriting. Remember, the term Super Jumbo Mortgage is used to describe mortgage loans exceeding $650,000 whereas a Jumbo Mortgage refers to loans which simply surpass Fannie Mae’s limits for conforming loans. Finding the right loan officer who understands what lenders concentrate on this market is key to finding the right program.

Is your rate too high? If you're looking to compare mortgage rates or to get a rate quote on a FHA loan start here


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