Jumbo Mortgages

what are jumbo mortgages

What are Jumbo Mortgages?

Conventional Conforming Mortgages (loans that follow rules for maximum mortgage amounts set forth by Fannie Mae or Freddie Mac) are not large enough to purchase certain properties in today's market. This does not mean that you can not get a loan for these larger amounts. Jumbo Mortgages offer buyers and home owners loan limits greater than today's conventional conforming loans.

What are the advantages of Jumbo Mortgage versus other types of loans?

Jumbo Mortgage Loans Allow Larger Loan Amounts

If you are seeking a loan amount that exceeds $417,000, then you need a jumbo mortgage loan. Each year, Fannie Mae and Freddie Mac set loan "maximums," so anything that exceeds these set amounts is considered a jumbo mortgage loan. Currently, loans greater then $417,000 are available through Conventional. FHA. VA and other programs.

Jumbo Mortgages Have Similar Requirements as Other Loan Types

Jumbo mortgages generally have similar underwriting and documentation guidelines as their smaller counterparts and are offered through FHA, VA and Conventional Programs. This means that Jumbo Loans can be accomplished in the same time frame as other Mortgage types.

Jumbo Mortgages are Available Through Conventional, FHA and VA Programs

Did you know that you could put as little as 3.5% down on your jumbo mortgage? FHA jumbo mortgages are currently available up to $729,750 (depending on your location) with a low 3.5% down payment requirement. Conforming Jumbo Mortgages (above $417,000) and VA Jumbo Mortgages are also available in many areas.

What factors determine if I am eligible for a Jumbo Mortgage?

To be eligible for a Jumbo Mortgage. your monthly housing costs (mortgage principal and interest, property taxes, and

insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an Jumbo Mortgage Approval.

See more on Jumbo Mortgage Requirements .

What is the maximum amount that I can borrow?

The maximum amount for a Jumbo Mortgage is determined by:

Maximum Mortgage Amount: The maximum Mortgage amount allowed for an Jumbo Mortgage varies from $417,000 to $3,000,000, depending on the program. The highest maximum Conforming or FHA Jumbo right now is $729,750. The lowest maximum Jumbo Mortgage amount available in any county is $417,000. To see what the conforming Mortgage limit is in the county in which you're interested, visit the following site https://www.efanniemae.com/sf/refmaterials/loanlimits/. This site lists U.S. territories as well as states.

Maximum financing: Depending on the state where the property is located and the Jumbo Mortgage program, the maximum Jumbo Mortgage amount will be 75% - 96.5% of the appraised value of the home or its selling price, whichever is lower (100% for VA Jumbo Mortgages).

How much money will I need for the down payment and closing costs?

Jumbo Mortgages require the home buyer to invest at least 3.5% - 25% of the sales price in cash for the down payment and closing costs. If the sales price is $500,000 for example, the home buyer must invest at least $17,500 - $100,000.

What property types are allowed for Jumbo Mortgages?

While Jumbo Mortgage Guidelines allow you to purchase or refinance condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Jumbo Mortgages can be used to finance primary residences, second homes and investment property.

More information on Jumbo Mortgages .

Source: www.jumbo-101.com

Category: Credit

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