Conventional Super Jumbo
A Super Jumbo Mortgage is generally categorized in the United States as a residential mortgage or other home-equity secured loan in loan amounts greater than the current Freddie Mac (FHLMC) and Fannie Mae (FNMA) high balance loan limit of $729,500. Most lenders actually differ to what defines a super jumbo mortgage subject to their own investor’s criteria. Super Jumbo mortgages are made available to any qualifying borrowers whose loan requirements exceed the current guidelines.
The super jumbo mortgage category is vastly different from Jumbo or high balance loan limits because it isn’t defined, regulated, or even controlled by any of the previously mentioned government agencies. Mortgage lenders independently define their own guidelines to define a Super Jumbo mortgage based on their investor.
Super Jumbo Mortgages inherently present a greater risk to the lender due to the large size of the loan, and considerably more than a conforming mortgage. The increased risk of Super Jumbo mortgages is mostly due to the lack of government “agency” (Freddie Mac and Fannie Mae) support for these over sized mortgage loans, and substantially reducing the readily available and willing pool of investors and insurers.