Before speaking with local lenders about jumbo mortgage loans, it’s important that you learn more about the topic and of the unique value in getting a jumbo loan on a local property. Our team at Summit Mortgage Corporation has significant experience in the marketplace and in our latest post, we’ll explain what you need to know about jumbo mortgage loans.
What is a jumbo loan?
First comes the most important question: what is a jumbo loan? A jumbo loan is a home loan that exceeds the conforming loan limits under Fannie Mae and Freddie Mac. They are sometimes called “non-conforming loans” within the industry. You can find out whether you require a jumbo loan by checking the current loan limits in your county.
How do I qualify for a jumbo loan?
Qualifying for a jumbo loan is a little more difficult than qualifying for a conventional loan and you may be required to provide more documentation than you would if your loan remained within the conventional loan limits. You may need the following to qualify:
A high credit scores
Most jumbo mortgage lenders will require a credit score higher than 720 in order for you to qualify for a jumbo loan.
A low debt to income ratio
If you are applying for a jumbo loan, you should have the means to pay it off. And so you should have a low debt to income ratio, around 45%.
In applying for jumbo mortgage loans with lenders, you may need to show that you have the cash on hand to pay for a year of mortgage payments.
In addition to the previously highlighted information, you may also be asked to prove your tax status, as well as provide bank statements showing your income and your current level of cash on hand.
By meeting the standards required and providing the necessary documentation you can be approved for your jumbo mortgage loan. Our team at Mortgages Diversified can help with this process. To learn more, call today!