In Arizona, a jumbo loan refers to a mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These conforming loan limits vary by county and are adjusted annually.
As of 2022, the conforming loan limit for most counties in Arizona is $647,200 for a single-family home. However, in certain high-cost areas, such as Maricopa County (which includes Phoenix), the limit is higher.
Jumbo loans are typically used to finance high-value properties that exceed the conforming loan limits. Because jumbo loans carry higher risk for lenders due to their size, they often have stricter underwriting requirements, higher interest rates, and larger down payment requirements compared to conforming loans.
It's important for borrowers in Arizona considering a jumbo loan to carefully evaluate their financial situation and compare different loan options to ensure they choose the best mortgage solution for their needs. Additionally, working with a knowledgeable mortgage lender or broker can help borrowers navigate the complexities of jumbo loans and find the right financing option.