JUMBO Loans
Jumbo mortgages are bigger than the average loan amount. They exceed the "conforming limit", which is the maximum loan amount that Fannie Mae and Freddie Mac will buy. The conforming limits are varied by location. The standard limit is $417,00 but in exceptionally expensive house markets, such as Los Angeles, the limit is set to $729,750.
To qualify for a jumbo mortgage expect to provide a down payment of at least 20 percent for a purchase (or have at least 20 percent equity in a refinance), proof of liquid assets, documentation of any loans, and proof of non-liquid assets like other owned properties.
Typical lending requirements include:
Be aware that many jumbo loans have a higher interest rate, and many loan programs only offer an adjustable-rate loan. There are some loan programs that do offer temporary buydowns and will accept more lenient requirements so it is important to shop around for the best jumbo loan program.
To understand more about jumbo loan mortgage or to get a list of jumbo loan programs please contact us.
To qualify for a jumbo mortgage expect to provide a down payment of at least 20 percent for a purchase (or have at least 20 percent equity in a refinance), proof of liquid assets, documentation of any loans, and proof of non-liquid assets like other owned properties.
Typical lending requirements include:
- Primary homes only. They are not available for secondary/vacation homes or investment properties
- 1-2 units up to $2 million or 3-4 units up to $1.5 million
- Downpayment minimum of 20%, some loan programs may require 30%
- Fix rate amortization or interest only, or ARM amortization or interest only loan type
- Credit score limits may vary, but 720 or higher is normally required
- Many lender require debt to income (DTI) no higher that 38%
Be aware that many jumbo loans have a higher interest rate, and many loan programs only offer an adjustable-rate loan. There are some loan programs that do offer temporary buydowns and will accept more lenient requirements so it is important to shop around for the best jumbo loan program.
To understand more about jumbo loan mortgage or to get a list of jumbo loan programs please contact us.
