What is a Jumbo Loan?
- A Jumbo Loan is a loan that exceeds $647,200 on either a new purchase or refinance mortgage transaction.
- Jumbo loans are generally going to be done by lenders who will be lending from their investor’s money, and these loans will end up in their portfolios.
- Jumbo Loan qualifications are usually more stringent regarding credit score and loan-to-value ratios.
- Loan-to-Value Ratios are limited to 80%.
- Typically, 720 or better credit scores are required for Jumbo loan programs.
- However, many people will use a 2nd mortgage or HELOC in conjunction with a Conventional loan to get to a higher loan amount needed to purchase a home.
What are the Benefits of a Jumbo Loan?
- Jumbo Loans have competitive rates
- They have more significant lending limits exceeding $647,200
- 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.
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