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%.