Jumbo mortgage loans provide financing to those who need a loan above conventional loan limits. Fannie Mae (FNMA) and Freddie Mac (FHLMC), two large agencies that purchase the bulk of residential mortgages in the United States, establish these limits. This limit signifies the maximum dollar amount that they will purchase from an individual lender. Those who need a first mortgage above the limit must look beyond the traditional lending market and search for lenders who offer jumbo mortgage loans.

Conventional Loan Limits

Conventional loan limits set by the two agencies are sometimes updated to reflect mortgage market changes. The last change, occurring in January 2006 established a limit of $417,000 for single-family mortgage loans. This limit affects every state in the union except Alaska and Hawaii. These two states have limits that are 50% higher than the rest of the country.

The Jumbo Mortgage

With rising home prices, many individuals and families find conventional loan limits constricting. This is why jumbo mortgage loans are available. For those who need heavy financing, jumbo loan lenders are there to provide it. Large investors, such as insurance companies and banks, often step in to fill the need for additional financing with maximum mortgage amounts going to the $1 million or $2 million range. Before purchasing a jumbo mortgage loan, you should be very confident in your ability to make the monthly mortgage payments, which may be quite large. Here is a list of recommended Jumbo Mortgage Lender online. It's important to use a reputable lender online to make sure your personal information is secure.

Finding a Lender

Because jumbo mortgage interest rates are normally higher than the rates for conventional mortgages, it is important to find a good lender. Fortunately, the lending market for jumbo mortgages is competitive. Many lenders online now offer this form of financing, which will enable you to make comparisons easily. While shopping, take time to carefully compare rates, lending fees, and loan terms and conditions.