Looking to go the luxury route and purchase a high-priced home?
A jumbo loan may be right for you.
Jumbo loans are home loans that exceed the conforming loan limits set by the Federal Housing Finance Agency. Conforming loan limits are mortgage loans that “conform” or follow Fannie Mae and Freddie Mac guidelines. In most areas of the country, the typical limit on regular home loans cannot exceed $548,250. Jumbo mortgages allow you to exceed those limits.
What are the qualifications?
- Good credit history – Your credit score should generally be 700 or higher for jumbo loans
- Financial strength – The maximum debt-to-income ratio for jumbo loans is 45 %.
- Down payment – Down payments on Jumbo loans often carry a minimum down payment of at least 10%.
- Property appraisal – The appraisal value must support the purchase price and the mortgage the borrower wants.
Jumbo Loan Benefits:
- Higher purchase limits
- Competitive rates
- Fixed and adjustable mortgage options available
- Financing for primary residence, second home or investment property
- Jumbo loans are the best solution for borrowers looking to purchase a higher-priced home.
Contact your Race Day mortgage expert to see if a jumbo loan is right for you.