Conventional Jumbo Loan
The main difference is that a conventional loan is for a borrower who puts a down payment of 20 while a jumbo loan is a specialty loan for those borrowers who are looking to purchase an expensive luxury property. Anything over that limit is considered a jumbo loan. Jumbo Vs Conventional Loan Ally Jumbo loans typically require a minimum credit score of 660 or 680 while the minimum score is generally only 620 for a conforming loan. Conventional jumbo loan . NerdWallet March 31 2021 Many or all of the. So if your loan amount is 548250 or higher your home loan is considered jumbo. Jumbo loans are for homes with prices that exceed the conforming loan limit. In short conventional mortgages are backed by Fannie Mae Freddie Mac whereas Jumbo loans are not. What is a jumbo loan. A jumbo loan also known as a jumbo mortgage is a type of financing that exceeds the limits set by the Federal Housing Finance Agency FHFA. These mortgages are riskier than conventional or governmen