What’s a jumbo mortgage loan?
Jumbo mortgages are home loans that exceed the conventional conforming loan limit for your county. A jumbo loan is one way to buy a high-priced home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you.
The limit on conforming loans is $424,100 up to $636,150 in most areas of the country, but jumbo mortgages can exceed these limits. Even so, if you’re considering a home in a high-cost area, you may still be able to obtain a conforming fixed-rate Mortgage or adjustable rate mortgages for up to $636,150.FHA loans have limits up to $636,150 in some counties. Contact ACC to learn more about your options.
Benefits and Considerations
Higher Purchase Limits
Jumbo mortgages can exceed the conforming loan limit, currently $424,100 in most parts of the United States.
Jumbo loan rates have reached historic lows in recent years, and we are very competitive with Jumbo products and rates.
Many jumbo mortgage lenders may allow you to take out a second mortgage for a combined loan-to-value ratio of up to 90 percent, bringing in only 10% down.
Requirements and Qualifications
- Credit history – Conventional loans are a good choice for borrowers with very good credit, which generally means a FICO score of 700 or higher.
- Financial strength – When applying for a jumbo mortgage, the maximum debt-to-income ratio for jumbo for loans is generally 45 percent, and the required reserve amount for jumbo loan borrowers varies on credit strength and down payment.
- Down payment – There is no private mortgage insurance option with a jumbo mortgage, so the required down payment will be larger – typically 20 percent. Or 10% 2nd with 10% down to meet the 20% required.
- Property appraisal – The property appraisal must support the purchase price for the home and the mortgage the borrower wants.
- Jumbo mortgages are a good solution for borrowers who are looking to buy a higher-priced home. Compare mortgage options to learn more on your own, or contact a mortgage loan originator to find out whether a jumbo loan may be right for you.