What is a jumbo loan?
A jumbo loan is a type of home financing that allows borrowers to buy luxury homes or refinance existing large mortgages by exceeding the loan limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans allow you to have larger loans at a lower rate because it does not conform to the requirements set by the major mortgage loan companies Fannie Mae and Freddie Mac.
Your loan is considered a jumbo loan if the loan amount exceeds the acceptable limit to be considered as ‘conforming’ to Fannie Mae and Freddie Mac guidelines.
What benefits do jumbo loans have?
- Jumbo loans can assist you in borrowing the money needed to purchase pricier properties.
- You can choose from a variety of different loan programs that may give you flexibility on your loan terms.
- You can borrow the full amount of money from one loan instead of having to break it up into two different loans for buying a higher-priced home. This may allow you to have better interest rates.
You may be eligible to qualify for a jumbo loan if you can meet these requirements:
- Have a decent credit score (700 and above)
- Have a low debt-to-income (DTI) ratio (under 43% at least)
- Proof of accessible cash on hand
Why should you choose Mortgage Possible?
Our team offers a 24-hour loan center for future home owners who don’t have time to apply for a loan during regular business hours. We offer quick loan approvals and provide our clients with the best loan options for their needs and financial situations. Our team members are well-versed in Jumbo loan rules and requirements and will ensure you are knowledgeable about our mortgage process prior to committing to a loan.
For any questions about the Jumbo loan process or any of our other home loan services, give our team at Mortgage Possible a call to speak to a local team member who can answer all of your home loan questions. Contact Us Today!