Jumbo vs Conventional Loans in Jerome, AR
A comprehensive guide to help you understand the differences between jumbo and conventional loans in Jerome, AR.
Table of Contents
Understanding Jumbo vs Conventional Loans in Jerome, AR
The main difference between jumbo and conventional loans in Jerome, AR is the loan amount. Conventional loans are backed by Fannie Mae and Freddie Mac up to specific limits, while jumbo loans exceed these limits and are considered non-conforming.
Conventional Loans
Loans that conform to Fannie Mae and Freddie Mac guidelines, typically up to $766,550 in most areas.
- • Backed by government-sponsored entities
- • Lower down payment requirements
- • More flexible qualification criteria
- • Competitive interest rates
- • PMI required if down payment < 20%
Jumbo Loans
Loans that exceed conventional loan limits, typically starting at $766,551 and above.
- • Not backed by Fannie Mae or Freddie Mac
- • Higher down payment requirements
- • Stricter qualification standards
- • Slightly higher interest rates
- • No PMI required
Loan Limits and Thresholds
Current Loan Limits for Jerome, AR
Conventional Loan Limit
$766,550
Maximum loan amount for conventional financing in most areas
Jumbo Loan Threshold
$766,551+
Any loan amount above the conventional limit
High-Balance Conforming Loans
In high-cost areas like Jerome, AR, there may be higher conforming loan limits. These are still considered conventional loans but with higher limits than the standard $766,550.
- • Check current limits for Jerome, AR
- • May qualify for conventional rates with higher limits
- • Still backed by Fannie Mae and Freddie Mac
- • More flexible than true jumbo loans
Ready to Choose the Right Loan in Jerome, AR?
Contact Fast Home Loan today for personalized advice on conventional vs jumbo loans for your situation.