Real Estate Glossary: Jumbo Loan, FHA Loan, Conventional Loan

Jumbo Loan: A non-conforming loan that exceeds the maximum loan amounts deemed by the Federal National Mortgage Association (includes Fannie Mae and Freddie Mac).  It is generally the type of mortgage that is used for the purchase of luxury homes. Jumbo loans often carry higher interest rates than other types of loans.

Conventional Loan:  A loan that is not guaranteed or insured through FHA or VA. Conventional loans often require a percentage down payment is made on the purchase of a property.

FHA Loan: A loan that is open to all homebuyers and insured by the Federal Housing Association. FHA loans have mortgage amount limits and are designed to assist borrowers who cannot otherwise afford a conventional loan.

Advertisements

Leave a comment

Filed under Real Estate, Real Estate Glossary

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s