Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. These loan amounts can range from $600,000 to $2,000,000 or more. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. We offer many different loan programs to find the right rate. Contact us for more details.
Q. Are rates higher on Jumbo loans?
In today’s environment the Jumbo market is very competitive and the rate can be the same or better than Fannie Mae conforming loans. The more you put down the better the rate. We research multiple programs from the largest national banks and mortgage investors to make sure we get you the right rate. There are many options available to make sure we can offer the right rates.
Q. Do Jumbo loans require more downpayment?
No, because we offer more program choices than just the conforming options of Fannie Mae and Freddie Mac. There are excellent Jumbo options for a primary residence with 20% down where you do not have to pay mortgage insurance. If you are interested in a minimum downpayment loan you will need excellent credit scores. We have many options for these loans but you need high credit scores to get a competitive interest rate. If you need any advice on credit scores or would like to see the detailed numbers for low downpayment options, please reach out to us.
Q. Is underwriting more difficult on Jumbo loans?
Typically, Jumbo loans require 2 years of tax returns. So jumbo loans can require more documentation. Showing assets for reserves is also a requirement. Reserves are money you have left over after downpayment to make the new total mortgage payment. If your total monthly payment was $3,000 and 12 months’ reserves were required, you would need to show assets of $36,000. Bank account and retirement accounts like IRAs can be used for reserves. It is our job to guide you through the entire process so everything is smooth and we close on time. We can answer any specific questions you have about underwriting. For most Jumbo loans the maximum debt to income ratio is 43%. This can be a little more restrictive than the conforming Fannie Mae programs. The good news about Jumbo loans are more programs are available. So we make sure to research and prequalify you for the program with the right fit and the right rate!
Q. Do Jumbo loans take longer to close?
No, because we offer in-house underwriting. We do not have to broker your loan to another company for underwriting. We control the underwriting times and get the appraisal ordered right away. We can move very fast if that is what you need.
Q. Do you have good options for Jumbo loans on second homes?
What is most important on your second home loan? Is it the percent of downpayment, or the interest rate, or a high loan amount? Let us know what you are looking for and we will provide the best option. We also offer different cash flow options. If you do not care about the 30 year fixed program, we can offer alternative programs resulting in a lower monthly payment. Let’s discuss and look at different options to find the right fit.