4 ms·
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
by 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 agoRelative 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 agoThis 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.