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.
The jumbo threshold in 2023 is $726,200 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.
Jumbo Mortgage Rates**
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.
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Frequently Asked Questions
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).
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 banking 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.”
*Rates shown are Annual Percentage Rate (APR). HELOC promotional rate of 5.99% APR is fixed for the first 12 months. After the promotional period, the rate will vary based on the Wall Street Journal Prime “Prime” rate published on the last business day of the month, 8.5% APR as of 7/27/23. APR may increase after the loan is closed; maximum APR is 17.125%. Minimum line of credit is $25,000. Property insurance is required. During the 10-year draw period a Home Equity Line of Credit with a balance of $25,000 and APR of 5.99% for the first 12 billing cycles will result in 12 interest only payments of $124.79. After the promotional period a balance of $25,000 and variable APR of 8.5% will result in 108 interest only payments of $177.08, followed by 179 payments of $246.87 and one (1) final payment of $245.88 during the repayment period. Payment example does not include taxes and insurance; actual payment obligation will be greater. During draw period minimum payment required is interest only. Closing costs will apply to home equity lines of credit secured by properties that are listed for sale. Properties currently on the market will be subject to credit report, title, recording, settlement, and appraisal fees (approximately $900). Certain costs associated with the transaction will be the members responsibility regardless of property listing status, including but not limited to per diem interest, taxes of any kind, and insurance premiums. Existing Service Credit Union HELOC’s are not eligible for this promotion. An early termination fee of $400 applies if paid off and closed within 36 months of opened. The fee will be waived if refinanced with Service Federal Credit Union if the borrower paid closing costs for the home equity line of credit. Other exclusions may apply, please ask your loan originator for details. Subject to credit worthiness and dwelling requirements. Must be an existing member or eligible for membership. Promotional fixed rate terms are limited to one time use. Promotion runs from 10/25/2022-09/29/23 and is subject to change or be discontinued without notice.
**The displayed rates for conventional loans assume 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 $726,200 and a 40% down payment. VA jumbo assumes a loan amount of $726,200 with no down payment. Payment examples can be obtained by clicking the calculate payments button above and do not include taxes or insurance premiums. Payment obligation will be higher. Appraisal rebate of up to $695 will be applied for purchase loans only. A purchase loan is the financing connected to the purchase of a property involving the transfer of title from seller(s) to buyer(s). Applicant(s) will be required to pay estimated cost of the appraisal up front. Rebate will be applied as a credit at closing towards the total amount paid for the appraisal associated. Credit will not exceed amount paid and cannot be transferred or exchanged for cash equivalent. Subject to change or be discontinued at any time.