Jumbo Loans - Your Key to High-Value Home Ownership
Welcome to our Jumbo Loans, your one-stop resource for all information about high-value home loans. If you’re in the market for a luxury property or a home in a high-cost area, a jumbo loan might be the right fit for you.
What is a Jumbo Loan?
A jumbo loan, also known as a non-conforming loan, is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, jumbo loans are not backed by Fannie Mae or Freddie Mac, which typically means they come with slightly higher interest rates.
Why Choose a Mortgage Jumbo Loan?
Jumbo loans open doors to properties that exceed the standard lending limit of $548,250 in most parts of the U.S., and up to $822,375 in high-cost areas. They are the perfect solution for borrowers looking to buy a high-priced or luxury home.
Jumbo Loan Requirments
Jumbo loans are designed for high-priced or luxury homes, exceeding the standard lending limit set by Fannie Mae and Freddie Mac. These loans come with their own unique set of requirements to ensure that borrowers can handle the larger loan amount.
Credit Score: To qualify for a jumbo loan, you need a higher credit score than what’s required for a conventional loan. Lenders typically require a minimum credit score of 680, with some lenders demanding as high as 760.
Down Payment: The down payment requirement for a jumbo loan varies depending on the lender and the property type. For instance, with certain lenders, you’ll need a 10.01% down payment for a single-family property up to $2.5 million.
Debt-to-Income Ratio: Jumbo loans also have stricter debt-to-income ratio requirements. The maximum debt-to-income ratio is typically between 38% to 43%, although this can vary based on the lender.
Proof of Assets: Lenders often want to see proof of six to 24 months of cash (or liquid assets) in your bank account. In some cases, lenders may require you to have cash for six to 12 months of mortgage payments.
Equity: Some lenders may require 20% equity.
It’s important to remember that these are general guidelines and actual requirements can vary greatly depending on the lender, your financial situation, and other factors.
Ready to Get Started?
If you’re ready to explore the possibilities that jumbo loans can offer, call us today!