When the economic stimulus package was signed by the President and put into place, it offered a higher loan limit for loans guaranteed by FHA. Lenders created a new product to utilize these higher limits: FHA Jumbo.
These jumbo loans are available for loan amounts of up to $625,500, depending on your area. You can look up the limit in your area here.
While these new loan vary slightly from the standard FHA loan, they are a huge improvement over currently available tradition jumbo loans. Some of the benefits include:
More favorable lending guidelines
- Lower rates
- Lower mortgage insurance rates
- Not rate add-ons for 2-4 unit properties
- Up to 96.5% financing
- 6% seller’s concession
Another part of the stimulus package was an increase to the Fannie Mae loan limits. However, these new programs come with stiff rate penalties if your credit is not perfect, and the programs are very limited in a variety of other ways.
If you are in a jumbo loan now, or are looking to purchase a property that would require a jumbo loan, the new FHA Jumbo loan is probably the best loan for you.
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Jumbo Loans 