Low Credit Score Jumbo Loans
A low credit score jumbo mortgage is a loan that exceeds the conforming loan limits. If the loan value is more than $417,000, then that is considered a jumbo loan. Jumbo loans are typically used for large, single-family homes, and they have a different underwriting process and come with a slightly altered set of guidelines. Jumbo mortgages are called non-conforming because they exceed the conforming amount that can be backed by Fannie Mae or Freddie Mac, the federal government-sponsored entities that guarantee mortgages. Non-conforming loans that exceed conforming limits are not backed by the government entities Fannie Mae and Freddie Mac. Jumbo loans are backed by private investors and have slightly different guidelines. The conforming loan limit in New Jersey is any mortgage over $417,000, so home buyers in New Jersey seeking mortgage loans higher than this loan value can apply for a low credit score jumbo home loan.