What is a Jumbo Loan?
- A Jumbo Loan is a loan that exceeds $417,000 on either a new purchase or refinance mortgage transaction.
- Jumbo loans are generally going to be done by lenders who are going to be lending from their investor’s moneys and these loans will end up in their portfolios.
- Jumbo Loan qualifications are usually more stringent when it comes to credit score and loan-to-value ratios.
- Loan-to-Value Ratios are limited to 80%.
- Generally 720 or better credit scores are required for Jumbo loan programs.
- Many people will use a 2nd mortgage or HELOC in conjunction with a Conventional loan in order to get to a higher loan amount needed to purchase a home.
- For example: If you wanted to buy a home with a $500,000 purchase price, you could take out a Conventional Loan for $417,000 and a second mortgage or HELOC for $58,000 to save significant dollars on your down payment and interest rate.
What are the Benefits of a Jumbo Loan?
- Competitive Rates
- Greater lending limits exceeding $417,000
- Jumbo Loans have very competitive Adjustable Rate Mortgages which may allow you to make your payment more affordable until Conventional financing can be arranged
Need to borrow more than a conventional loan will allow? We can help you structure the right jumbo loan for your unique situation.