A jumbo mortgage is a mortgage loan which is larger than the limits set by Fannie Mae and Freddie Mac. Since these two agencies will not purchase these types of loans, they usually carry a higher interest rate (to enhance their value and marketability to investors).

As of January 1, 2008 loans over the amounts shown below are considered Jumbo Mortgages:

• One-family homes:   $750,000
• Two-family homes:   $750,000
• Three-family homes: $750,000
• Four-family homes:   $801,950

Lafayette Financial makes loans over the Fannie mae/Freddie Mac loan limits shown above. We have no set maximum loan amount, but prefer loans under $500,000 and fund smaller loans quickly.