Jumbo Loans to Help You Buy That Dream Home -
See How They Work Here
Jumbo Loans are mortgage loans that surpass the conforming loan limit. Basically, jumbo loans are for amounts higher than the top limits set by Fannie Mae and Freddie Mac. The present conforming loan limit for a one-family house is $454,000 in every state except Alaska and Hawaii. In those states, it is $625,000. If you happen to live in a federally defined high-price market there may be conforming high balance limits for some loan packages. Those mortgages will have higher interest rates and more strict underwriting terms than conforming loans, but are usually less than jumbo loans.
What makes jumbo loans different?
In order to qualify for a jumbo loan, it usually takes a lower debt-to-income ratio, higher credit scores than other kinds of loans and a larger down payment. Also, emergency funds (reserves) must be higher than for standard kinds of loans. Different lenders have different requirements, so be sure to check with your lender to find out what theirs are.
Jumbo Loan Features
• A loan with amounts above the maximum limits of conforming loans.
• They come in a range of adjustable and fixed rate options
• You might be able to get one with interest-only payments
Jumbo Loan Benefits
• Gets you financing for loans up to $2,000,000
• You get one loan for the entire loan amount required
• You can get a variety of loan options
Things to Think About
• Interest rates tend to be a little higher on jumbo loans
• You will not be able to build equity if you select the interest-only loan.
Jumbo Loans are the way to finance that castle in the sky you’ve always dreamed of, with loan amounts soaring up to $2 million, provided you can qualify.