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What is a Jumbo Loan?

U.S. government will insure through Fannie Mae or Freddie Mac, the government-sponsored entities that buy “conforming loans.” These “non-conforming” mortgages typically carry higher interest rates; we keep ours competitive.

Jumbo mortgages are available for primary residences, and second or vacation homes, and are also available in a variety of terms, including fixed-rate and adjustable-rate loans.

Today’s Jumbo Loan Rate

The jumbo threshold in 2021 is $548,250 in most locations, but in some places—such as Rockingham and Strafford counties in New Hampshire, and many counties in Massachusetts—the limit is much higher. Whether you end up needing a jumbo loan or a conforming loan, we have you covered.

Conforming Loans vs Nonconforming Loans

Conforming loans are mortgages that conform to financing limits set by the Federal Housing Finance Agency (FHFA) and meet underwriting guidelines set by Fannie Mae and Freddie Mac, whereas nonconforming loans do not. Loans above the conforming limit are known as jumbo loans, and the terms and conditions of these mortgages can vary widely from lender to lender, including affecting the minimum down payment, qualifying criteria and mortgage rate.

Learn more by contacting one of our mortgage specialists today, or apply now.

Mortgage/Home Equity Rates

Rates effective as of: 1/26/2022 9:36:56 AM (ET).

30 Year Fixed Rate Mortgage3.625%0.2503.787%
15 Year Fixed Rate Mortgage2.750%02.998%
30 Year Fixed VA3.500%03.640%
30 Year Fixed Mortgage Construction Single Close3.875%0.2503.995%
Home Equity Line of Credit Fixed Rate Promotion2.500%02.500%

The displayed rates for conventional loans assumes a loan amount of $250,000 for a single-family, owner-occupied purchase transaction with a down payment of 40% and a credit score of 740 or higher.  VA rates assume a loan amount of $250,000 and no down payment.  Conventional jumbo loans assume a loan amount of $548,251 and a 40% down payment. VA jumbo assumes a loan amount of $548,251, with no down payment.  Payment examples do not include taxes or insurance premiums.  Payment obligation will be higher.

A $500 credit towards closing costs at time of closing will be applied for members with an ACH direct deposit into a Service Credit Union checking account and automatic payment of the mortgage from the Service Credit Union checking account for the term of the loan.

Frequently Asked Questions

How long does the process take?

We routinely process and close mortgage applications within 30 days.  However, there are many variables that determine the length of the process, including how fast you respond to our requests for documentation.

It depends on many variables, including the down payment amount, loan program, and property type. We do not have a published minimum credit score, however, if you are putting down less than 20%, and are not using the VA loan program, the minimum credit score is typically 620. 

Yes, we are a national lender!  We do mortgages in all states with the exception of Alaska, Texas, and Hawaii.  Not all programs are available in all states. Construction loans are available only in NH and MA.

While it is possible that your loan will be sold (the standard Fannie Mae promissory note gives the lender the right to sell the loan), it is important to understand that we will still be servicing your loan.  We generally do not sell our loans (there are some exceptions), and even if we do, you will still be making your payments to Service Credit Union and we will still be handling your escrow account (if you have one).

Yes; if you have a direct deposit of your net pay into a Service Credit Union checking account, and set up an automatic payment of your new mortgage from your Service Credit Union checking account, you will be offered a $500 credit toward closing costs. 

In certain circumstances, a co-signer is permitted.  However, we will require that the occupant borrower be qualified from credit and ability to repay perspective. Generally, we require a co-borrower vs. a co-signer.  A co-borrower has the same liability as to the primary borrower.

We do not have a specific bridge loan program.  However, we may be able to achieve a bridge loan through the use of a home equity line of credit on the house you will be selling.  This will depend on the amount of equity you have and your ability to qualify to carry the debt for your existing mortgage (if any), the home equity line of credit, and the mortgage on your new home.

We do not offer loans for rental properties.

We do not offer loans for manufactured housing (mobile homes) regardless of whether or not they are permanently attached to a foundation.

Hear From Our Happy Buyers

“I’m extremely impressed with how fast and smooth this home-buying process was with all parties involved, thank you.” – Kevin W., Sullivan, NH

“From start to finish, our refinancing mortgage was handled with courtesy and in a timely manner that was extended to us.” – Lawrence and Janet B., Wilton, NH

“I could not be happier with how Service CU handled my refi … I am truly happy I chose Service CU for all of my baking needs.” – Thomas R., Salem, NH

“Everyone did a great job. I would strongly recommend anyone to use Service CU. Thank you.” – Sergio Z, Peterborough, NH

“Excellent and professional service by all throughout the entire process. Well done.” Tim, Manchester, NH.”