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Benefits of a Jumbo Loan with PenFed
PenFed can now make Jumbo Loans as high as $1.5 million. PenFed is your partner in helping you obtain your dream home and making that process as simple as possible. Our Jumbo Loans offer:
JUMBO LOANS
The Difference Between a Nice Home and Your Dream Home
- Opportunity to get a larger loan for a more Expensive Property
- Allows you to borrow more than Fannie Mae or Freddie Mac limits
What is a Jumbo Loan?
A Jumbo Loan is also known as a non-conforming loan as it does not conform to the specific rules of either Fannie Mae or Freddie Mac, two government agencies that guarantee loans. Specifically, there is a max limit that can vary depending on the location of the property. For 2021, if your loan is above $548,250, you likely would need a Jumbo Loan.
Types of Jumbo Loans
What is a Jumbo Fixed-Rate Mortgage?
With a fixed-rate Jumbo Mortgage, your interest rate stays the same for the life of the loan (or term). Your interest rate will not change.
What is a Jumbo Adjustable-Rate Mortgage?
An Adjustable-Rate Mortgage (ARM) has an introductory period with a lower interest rate than a fixed-rate mortgage. After the introductory period has expired, the rate can move up or down with market changes.
Mortgage Knowledge Center
Up to $2,500 in lender credits assisting you with closing costs (only applies to purchase loans)1
No lender fees2
A mortgage that exceeds $548,250 (upon qualification)
In high-cost areas, a Jumbo Loan may be the best or even only option
How Do I Get a Jumbo Loan
You'll need the following to qualify for a jumbo loan for all borrowers:
A satisfactory credit score (700 or higher)
At least 2-year employment history
Proof of income - typically 1 - 2 months of paystubs
At least 1 year of W2s
Acceptable debt-to-income-ratio (DTI)
Minimum 6-months reserves required
Possible additional financial verification like:
Self-employment income (2 years of tax returns)
Current debts information (auto, alimony, credit card, etc.)
Mortgage Knowledge Center
Additional Resources
PenFed Mortgage Products
Disclosures
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1For eligible fixed rate, ARM, and VA loans PenFed offers to all members who submit a completed home purchase mortgage application on or after March 1, 2020. Members can receive the lender credit upon closing with PenFed, subject to qualification and approval. For loans $0-$199,999 the lender credit will be: $500. For loans $200,000-$699,999 the lender credit will be: $1,000. For loans $700,000 and up the lender credit will be: $2,500. Pre-Approvals and refinance applications are not eligible for the lender credit. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product. Please contact your PenFed Mortgage Loan Officer for more details. The lender credit is available for all funded purchase mortgages in all states, including District of Columbia, Puerto Rico and Guam.
2Other fees may apply, such as discount points to buy down your rate.
