ABOUT JUMBO LOANS
A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $417,000; however, the limit is $625,500 in higher cost areas.
With the fluctuating market, jumbo home mortgage loans do call for stricter requirements than in years past, but still follow a similar process of a typical loan. You will generally need a 10-20% down payment and will be able to potentially receive lower fixed or adjustable rates offering flexibility for financing with a bigger loan.
Jumbo Loan Eligibility
If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you. You must consider that you are looking at higher interest rates but also recognize that it also provides the convenience of one loan for the entire amount you are looking to borrow instead of several loans. Plus, you can add extra features such as interest-only payments or temporary buy-downs.
Benefits of Jumbo Loans
- Finance a home over the maximum loan amount established by the Federal
- Housing Finance Agency
- Higher purchase limits allow borrower to purchase more house
- Convenience of one loan for the entire loan amount
- Primary residence, second home or investment property
- Fixed-rate or adjustable-rate mortgages (ARM)
MORE ABOUT JUMBO LOANS
To learn more about jumbo loans and see if this is the best option for you, please see the frequently asked questions below.
A Jumbo Loan is your best (or only) option if you need to borrow between $424,000 and $3,000,000 for a home purchase or refinance, and are looking for higher but flexible rates and terms, and no pre-payment penalties.
Jumbo home mortgage loans do call for stricter requirements than in years past, but still follow a similar process that a typical loan would. You will generally need a 20% down payment and will be able to potentially receive lower fixed or adjustable rates offering flexibility for financing with a bigger loan.
HECMs are federally-insured reverse mortgages backed by the U. S. Department of Housing and Urban Development (HUD). HECM loans enable you to withdraw a portion of your home’s equity and can be used for any purpose.
Any of the loan experts at Fairway Independent Mortgage Corporation in Grand Junction will be happy to walk you through the application process for a jumbo loan. Contact us today!