What Is a Super Jumbo Mortgage?

A super jumbo mortgage is a type of mortgage used to purchase large and costly properties. Here are the basics of the super jumbo mortgage.

Super Jumbo Mortgage

The super jumbo mortgage is a type of mortgage that usually amounts to at least $650,000. This particular category is not closely regulated as in the case of a traditional jumbo mortgage, though, so standards from one lender to the next can vary. In some cases, lenders will classify super jumbo mortgages differently and start them out as low as $500,000.

Risk Considerations

Whenever a lender is considering taking on this type of loan, they have to look at the risk involved. Typically, these types of mortgages are considered extremely risky. They are putting up a large amount of money all at once on one particular lender. This means that they have to be very careful when it comes to selecting the proper borrower. To qualify for this type of mortgage, you are going to have to have a very high credit score as well as a higher-than-average annual income.

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