What Is A Jumbo Loan?

Jumbo loans are a type of financing that exceeds the maximum loan amount limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans are typically used to purchase high-value homes and may require a higher down payment than a traditional conventional loan.

A ‘conventional mortgage’ is one that follows lending guidelines set by Freddie Mac and Fannie Mae. In Hawaii, the 2023 maximum conventional amount financed is $1,089,300. Any loan amount above graduates into the Jumbo Loan category. The loan process and servicing are similar to conventional except that the investor may have specific criteria they require to grant the final loan approval. Most jumbo loans under $2,000,000 require a 10% minimum downpayment, loans above $2,000,000 may require 20% minimum down payment.

 Big Island Mortgages by Doug Mallardi

(808) 333-4341 doug@bigislandmortgages.com

Start an online loan application, click here.

Schedule an appointment, click here.