Jumbo Mortgage

Thinking of moving up to a bigger house or a more upscale location? Making such a big decision requires some solid financial backing. Not all types of mortgage loans offer you enough financing to purchase an expensive property, we know this. We at Pegasus Mortgages offer jumbo mortgages that will assist you in getting that loan to purchase your dream house.

What is a Jumbo Loan?

A jumbo loan has a loan amount that exceeds the Fannie Mae conforming and high balance loan limits. A jumbo loan covers residential purchases and refinances for single-family, co-op, and condo loans.

Jumbo vs. Conforming Loan

A jumbo loan is a loan that is larger in monetary value and size when compared to a conforming loan, making it riskier to mortgage lenders. Jumbo loans often require a higher down payment and a higher credit score than conforming loans. A conforming loan follows the guidelines set by Fannie Mae and Freddie Mac.

Jumbo Loan Limits

As of January 1, 2019, the conforming loan limits have increased to $484,350 with the high balance loan limits up to $726,525 in high-cost areas. Thus, jumbo loans have a loan amount greater than $726,525. A high balance loan amount is between $484,250 and $726,525. Whether you are looking for a fixed-rate mortgage or an adjustable-rate mortgage, Pegasus is well equipped to professionally assist you with your conforming, high balance, and jumbo loans.

Pros of Jumbo Loans
  • Not restricted by limitations of Fannie Mae/Freddie Mac guidelines
  • Larger loan amount for a larger mortgage
  • Interest rates for jumbo loans may be potentially lower than standard conforming loans
  • Jumbo loans, unlike conforming loans, typically do not require private mortgage insurance at any level.
Cons of Jumbo Loans
  • Tend to be more difficult to qualify for – Jumbo loans have an increased risk associated with them, so jumbo mortgage lenders have stricter guidelines when qualifying applicants. To obtain a jumbo loan, you will often need a higher FICO score than usual, a lower DTI and higher than usual reserves and assets.
  • The property you are buying may require a second appraisal, which may cost you a small fee
  • Potentially higher down payment
Interest Rates for Jumbo Loans

Interest rates for jumbo loans may be potentially lower than standard conforming loans. Pegasus has a large network of investors and lenders, which allows us to match your financial profile with the lowest possible interest rates for jumbo loans.

Have you found your ultimate dream home? We are specialized in financing jumbo loans since 2005, and we work diligently to offer our clients the best interest rates for jumbo loans to match their financial needs. We’re here to help you understand the jumbo loan process and to make it as painless and as seamless of an experience as possible!