There is a limit for standard / conforming home loans at a dollar amount that hovers in the neighborhood of half a million dollars in most areas. Higher cost locations generally have higher conforming loan amounts that vary state by state. Regardless of the loan limits in your area, jumbo loans are larger loan amounts that are harder to secure and carry a higher interest rate compared to conforming loans that have lower interest rates on 30 and 15 year fixed terms. .
How to Get the Jumbo Loan You Need for Your Dream Home
A jumbo loan typically requires a larger down payment than a standard or “conforming” loan. This may be as low as ten percent and up to thirty percent of the purchase price. These loans may also have more stringent requirements for approval than conforming loans. A 30-year fixed jumbo loan may require the following, depending on where your credit, type of property and employment;
* A credit score of 700 or above.
* A debt-to-income ratio of 45 percent or less.
* Cash reserves sufficient to cover the mortgage payments and property taxes for 6 to 12 months.
Due to a number of factors such as higher rates, stringent requirements and etc. many home buyers try to come up with enough down-payment to only require a conventional mortgage. However, sometimes that’s just impossible and a jumbo loan is the only option.
Where to Get Your Jumbo Loan
There are a number of traditional sources that can provide mortgage loans. However, shopping for rates through traditional channels can be time consuming and difficult. If you are price sensitive and want the some of the best deals available on a mortgage, you may want to look online for your 30-year fixed jumbo loan. GetMoney.com will match you with a lender that has access to multiple sources of funds. The advantage of that is that you’ll be offered some of the lowest rates available in the market. Be sure to inquire about purchase specials.
There is no better feeling than owning your dream home; get your jumbo mortgage loan application process started today!
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