Conventional loans are limited to $484,350 in Pima County. Anything exceeding that would be considered a “jumbo” loan.
In Pima County and most of the U.S. jumbo loans are ones which exceed $484,350 and therefore above the amount that Fannie or Freddie are willing to purchase from originating banks. Jumbo loans are typically purchased by other large investment institutions or are held by the originating bank. Since the number of options available to purchase these loans is limited, the rate charged to the consumer is typically higher than that of a similar length conforming loan.
Because of the size and limited pool of investors, guidelines are typically more stringent than other loan products. The higher the loan amount, the more restrictions are placed on credit score, down payment, and other borrower related criteria.