Jumbo Conventional mortgages are those conventional mortgages described on the conventional page which are over the loan amount of $417,000 but are still within
the 2009 expanded Federal National Mortgage Association (FNMA or Fannie Mae) limits. You can find a complete statewide listing the FNMA limits by county on the FNMA
website
This ability to offer higher limits is new for FNMA on a county by county basis as FNMA had always been
known for its one national limit, with the only exception being in some high cost areas such as Alaska and Hawaii to name two.
With this new higher limit, there has been an introduction of a new pricing structure on conforming conventional loans as well. Loans between $417,001 and $625,500 are
now known as Jumbo Conventional mortgages and the pricing is subject to secondary marketing concerns. In the past, Conventional Loans were priced one way while jumbo
mortgages were priced as a completely different instrument, going to different investors.
The hope of the lending public was that these new conforming limits would offer a
conventional loan at the conventional pricing to the higher limits without premiums being placed on the pricing but the market for the securities on the sales of these mortgages
is still demanding the higher rates. It is not clear at this time if the pricing will decrease for these loans as well after the current liquidity crisis is over and the market returns to
more normal operations.
If you need a conventional mortgage with a loan amount over $417,000 but not more than $625,500, depending on the county and state in which you live you may still be able to
get a FNMA loan. The rates will not currently be as low as borrowers still falling within the $417,000 maximum, but the funds will be available if your county is considered a high
cost area.
Contact us today and we can help you whether your needs are for a purchase or a refinance. We can compare and know which lenders offer which programs, at
what rates and save you the hassle of shopping lender after lender. Let us put our experience and knowledge to work for you!
