Jumbo Loans

A jumbo mortgage is any loan in an amount that exceeds a state’s set conventional conforming loan limit. In Iowa, the limit is currently set at $417,000 and above. These loan limits are set by Fannie Mae and Freddie Mac.

In general lenders assess more risk to jumbo loans because of their size. If a borrower defaults on a jumbo loan the lending institution is on the hook for a larger amount of money and with a property to sell that a very small percentage of people can afford. On top of the risk, the market on these types of properties are the most vulnerable to market swings. To combat this risk, generally jumbo loans require a higher down payment amount, strong credit profile, have higher interest rates, and some will contain a balloon feature.

If your loan amount exceeds the conforming loan limit, contact an Infinity Financial Group loan consultant today for pricing and other loan details.