Jumbo Loans

Jumbo mortgages are home loans that exceed conforming loan limits.  If you are thinking about buying a high-priced or luxury home, check into jumbo home loans.

The requirements and guidelines include: 

  • Good credit history – Conventional loans are a good choice for borrowers with very good credit.This generally means a FICO score of 700 or higher.

  • Financial strength – When applying for a jumbo mortgage, the maximum debt-to-income ratio for jumbo loans is 45 percent. The required reserve amount for jumbo loan borrowers can be as high as 20 percent of the value of the loan.

  • Larger down payment – There is no private mortgage insurance option with a jumbo mortgage. The required down payment will be larger - typically 20 percent.

  • Property appraisal – The property appraisal must support the purchase price for the home and the mortgage

The limit on conforming loans is $424,100 in most areas of the country, but jumbo mortgages can exceed these limits. Even so, if you're considering a home in a high-cost area, you may still be able to obtain a conforming fixed-rate mortgage or adjustable-rate mortgage for up to $636,150. FHA loans have limits up to $729,750.

 

For more information on Jumbo Loans, give us a call or complete the online application.