What is a JUMBO LOAN?
Jumbo mortgages are loans that exceed the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO) and are not eligible to be purchased, securitized, or guaranteed by Fannie Mae or Freddie Mac. A Utah jumbo loan is for mortgages more than $453,100, typically. There are circumstances where you can avoid a jumbo loan with a loan amount up to 625,500.
You can select a conventional fixed-rate or adjustable rate mortgage (ARM), and there are no prepayment penalties. Talking to a licensed Utah mortgage broker can help you identify the best loan type for your situation as each program maintains its own unique rules.
Down payment requirements vary significantly with jumbo loans and will range between a minimum down payment of 5% to 20% depending on the size of the loan and other qualifying factors.
Most jumbo loan programs allow you to finance single-family detached properties, condominiums and planned unit developments (PUDs).