Jumbo loans are large, non-conforming loans that cannot be purchased or guaranteed by Fannie Mae or Freddie Mac. These loans are used for buying property costing more than $417,000. This limit was established for most areas in the United States, however there are 39 counties that have higher limits. Click this link for the PDF detailing limits on those counties, as provided by the Federal Housing Finance Agency
Jumbo loan conforming limits are set and updated every year.
A jumbo physician loan mortgage is no different, except that they don’t require the same debt to income ratios or PMI. If your income is high enough and you have saved a decent sized nest egg, you may want to consider a jumbo loan. Our advice is always conservative when it comes to home purchases:
- Don’t buy more than you can afford
- Buy in a quality, established neighborhood
- Pay off your loan early by submitting one additional payment per year