(310)-614-7252 don@donaldsinclair.com

Looking for a loan that offers a larger amount of financing than a conforming loan? Then, contact Don or fill out our quick quote form and find out if  you qualify for a jumbo loan.

Benefits of Jumbo Loans include:

  • Financing available up to $10 million
  • Only one loan for the entire loan amount instead of multiple mortgages
  • Highly competitive pricing
  • Fixed and adjustable rate mortgage options
  • Quick turnaround

Qualifying For a Jumbo Mortgage:

Business  / Employment –

Whether you’re qualifying for a $500,000 mortgage, or a $5 million mortgage, there is obviously going to be a sizable monthly mortgage payment that the underwriter will want to be sure you can afford over a long period of time.

It’s important to be thorough in explaining what you do for a living, the health of the industry and the likelihood of continued employment.

Assets –

Documentation of assets is critical, and they have to make sense in relation to the income stated on the application.

For example, if the borrower states an income of $50,000 a month, then there should be sufficient assets and investments to back it up.  If there are any large expenditures or deductions from checking accounts, make sure to have a paper-trail or letter of explanation that clearly details the nature of the transaction.

Credit Scores –

In addition to having high scores and proof of a responsible borrowing history, underwriters may also look for other sizable debts that that the borrower has had a positive experience managing or paying off.  Public records and IRS issues will need to be thoroughly documented and explained.

Property –

The landscape has changed for appraisals, so don’t be surprised if multiple appraisals are required for financing approval on the property.

A good rule-of-thumb to remember when trying to qualify for a non-conforming loan is to have your paperwork organized, as well as a good explanation prepared for anything that may raise potential questions by an underwriter about your ability to repay the mortgage over the term.

Frequently Asked Questions:

Q:  Why are rates higher with Jumbo Mortgages?

The rates are typically higher with Jumbo Mortgages due to the amount of risk associated with financing a larger property that may be more difficult to sell and recoup losses in the case of a default.

Q:  What are the down payment requirements for Jumbo Mortgages?

Typically, down payments for non-conforming loan amounts can be 20% or higher of the purchase price.  Generally speaking, the larger the purchase price, the more money the borrower will have to invest as a down payment.

Q:  Do I have to pay Private Mortgage Insurance on a Jumbo Mortgage?

PMI (Private Mortgage Insurance) is only required if the LTV (Loan-to-Value) is greater than 80%.