What is an FHA Jumbo Loan?

How FHA jumbo loans can help you save 

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Just like private lenders, the Federal Housing Administration offers FHA jumbo loans for qualified borrowers. Much like regular FHA loans, FHA jumbo loans usually have significantly lower down payment requirements than their private counterparts. But, if you take out an FHA loan (jumbo or otherwise) with a less than 20% down payment, you’ll have to pay for mortgage insurance. The duration and rate of your mortgage insurance payments will depend on both the size of the loan and your loan-to-value ratio (LTV), i.e. the mortgage amount divided by the appraised value of the property. Plus, if your loan is more than $625,000, which is considered a jumbo loan in the vast majority of counties, you’ll likely have to pay a higher mortgage insurance rate. 

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