Jumbo Mortgage Loans in NH
A “jumbo” mortgage is a home loan for any amount that exceeds the “conforming” loan limit established annually by Fannie Mae and/or Freddie Mac. In most NH counties, the limit for 2020 is $510,400, with a $690,000 limit in Rockingham and Strafford counties. Fannie and Freddie call the shots on limits because they are the large, quasi-government agencies that purchase the bulk of U.S. residential mortgages from banks and other lenders, allowing these lenders to free up liquidity to help finance even more home buyers.
Are jumbo rates higher?
If you want to borrow more than the conforming loan limit, you’ll have to meet a tougher set of standards and usually pay a slightly higher interest rate. The jumbo interest rates are generally higher because of the historically higher delinquency rate associated with these larger loan amounts. Of course, the more money you put down and the higher your credit score, the lower your interest rate will be.
How do I qualify for a jumbo loan?
You qualify for a jumbo mortgage using the same methodology as a conforming loan. Your credit score, down payment amount, income, current debt obligation, the value of the collateral, and money you have left over after closing all impact your ability to qualify. With jumbo mortgages, we want you to have a little better credit score, a larger down-payment, better income to debt ratios and more money in reserve after closing. The larger the amount you want to borrow, the tougher the standards will be.