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Jumbo Home Loan

Overview

An FHA loan is a mortgage that’s insured by the government. FHA loans typically require lower down payments & people with lower credit may be more likely to get approved.

Higher Balanced Loan Amounts

A wide range of specialized financing solutions including adjustable-rate and interest-only options.

Credit Score & Debit

You should have a credit score of 700 or more. Your ratio of income-to-debt should be very low (under 43%)

Proof of Cash

You are required to give a proof of your accessible cash in hand which is needed to cover payments.

W2 Employment or Self-Employment

All borrowers require submitting 30 days payslips with W2 taxation forms that stretch to the past two years.

Jumbo Homes Loans can make high-end home purchases possible.

What is a Jumbo Home Loan?

Jumbo Loans are higher balanced loan amounts that exceed the conforming loan limit ($647,200). They are designed to finance more expensive homes, or those in a highly competitive real estate market. Some borrowers prefer to finance more of the home’s cost rather than tying up cash, making the jumbo mortgages a helpful financial tool

Jumbo loans are usually used for buying high-priced houses. Potential real estate buyers for larger homes should have a strong and stable financial condition to secure large mortgage loans. They are required to have a high credit score with a low ratio of debt-to-income along with sufficient cash reserves to support their mortgage.

What is required for a Jumbo Loan?

If you want to buy a house that costs about a half a million dollars or above, and you don’t have enough money to support your purchase, then a jumbo mortgage can help. The credit requirements for a jumbo loan are much stricter and rigorous than the conventional home mortgage requirements. This is because there is a higher credit risk for the lender involved because FNMA and FHLMC do not guarantee loans. The risk is also higher because a large sum of money is involved.

A jumbo loan is right for you if you have:

  • High- income
  • Good credit score
  • Plenty of assets
  • Strong financial backing

To qualify, you also need to show and prove your liquid assets along with cash reserves that should be equal to the mortgage payments for at least six months.

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