4 ms·

Jumbo loans doesn’t mean risky.

• yardie 4y ago
  Jumbo loans are inherently risky due to their size. Fannie Mae doesn't support them and only in very limited cases; homes in LA, SF, NYC. Since the banks can't use those federal services (Fannie Mae) they have to carry that risk.
  • throwaway20222 4y ago
    Relative risk may be higher because of the Fanny Mae requirements, but there are other variables including loan to value ratios that can adjust accordingly
  • koheripbal 4y ago
    This is overly simplistic.
  • sndean 4y ago
    > Fannie Mae doesn't support them and only in very limited cases; homes in LA, SF, NYC. Here's the loan limit map for 2022: https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limit-Map.aspx https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-L... It's more than just three cities, including all of northern Virginia, and there's gradations.