SPARTA FINANCIAL,LLC

SPARTA FINANCIAL,LLC
SPARTA FINANCIAL,LLC
  • Home
  • About
  • Home Equity
  • Mortgages
    • Fixed vs. Adjustable
    • Government loans
    • Jumbo vs. Conforming Loan
    • Reverse Mortgage
  • More
    • Home
    • About
    • Home Equity
    • Mortgages
      • Fixed vs. Adjustable
      • Government loans
      • Jumbo vs. Conforming Loan
      • Reverse Mortgage
  • Home
  • About
  • Home Equity
  • Mortgages

CONFORMING / JUMBO LOAN

There is another distinction that needs to be made, and it's based on the size of the loan. Depending on the amount you are trying to borrow, you might fall into either the jumbo or conforming category. Here's the difference between these two mortgage types.





  • A Conforming Loan is one that meets the underwriting guidelines of Fannie Mae or Freddie Mac, particularly where size is concerned. Fannie and Freddie are the two government-controlled corporations that purchase and sell mortgage-backed securities (MBS). Simply put, they buy loans from the lenders who generate them, and then sell them to investors via Wall Street. A conforming loan falls within their maximum size limits, and otherwise "conforms" to pre-established criteria.



  • A Jumbo Loan on the other hand, exceeds the conforming loan limits established by Fannie Mae and Freddie Mac. This type of mortgage represents a higher risk for the lender, mainly due to its size. As a result, jumbo borrowers typically must have excellent credit and larger down payments, when compared to conforming loans. Interest rates are generally higher with the jumbo products, as well.



  • Click below for more information on rates and product details.


Find out more

SPARTA FINANCIAL, LLC

400 TradeCenter, Suite 5900 Woburn, MA 01801

603-685-3643

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