When you are looking for a house, you have your choice of mortgage loans. One such type of loan is a jumbo loan. This is a loan that exceeds the limits of conforming loans. In most states, the limit on this type of loan is $417,000. Of the more than 3,000 counties in the United States, each has set a limit for jumbo loans. The limits for 2016 (and into 2017) are as follows:
A jumbo loan is designed to help a homebuyer purchase a house that is considered to be a luxury home. The loans can also help people purchase houses in real estate markets that are considered highly competitive. There are tax implications and underwriting requirements that come with jumbo loans.
If you are considering a luxury home or one that is in a high-priced area, you need to speak with an experienced real estate agent. Your agent can assist you not only in choosing a home, but helping you determine what type of loan is necessary and if your financial situation will qualify you for a larger loan.