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 $2.5 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.
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.
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%.