When Do You Need A Jumbo Mortgage?

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Summary: A jumbo mortgage is more than $417,000 for a single family home. A buyer buys a $420,000 home but puts down 20 percent and does not need a jumbo mortgage. Jumbo mortgage amounts vary for other types of property.

Q: Would a jumbo mortgage be required on a house that sells for $420,000? What if I put down 20 percent of the selling price?

A: A jumbo mortgage is a loan over $417,000 for single family homes. That amount differs for different kinds of properties and can be higher if you are buying a 2 to 4 unit building and plan to live in one of the units. If you put down 20 percent, you're putting down $84,000. So the loan you'd need is only $336,000. That falls well within conventional financing guidelines.

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