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Investor Relations

Buying a home is one of the most important decisions you'll make.

Do I qualify for a Jumbo Loan?

Jumbo Loan

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Have you ever wonder if you qualify for a mortgage? What the requirements are? You may have too many questions but please read carefuly and If you have a questions you can either apply or ask for more information. We are here to help you.

Jumbo mortgages, or jumbo loans, are those that exceed the dollar amount loan-servicing limits put in place by GSE’s Freddie Mac and Fannie Mae. This makes them non-conforming loans.

 
As of 2018, these limits are $453,100 in all states except for Alaska, Guam, Hawaii, and the U.S. Virgin Islands where the limit is $679,650. The conforming limit is higher in counties with higher home prices, so be sure to check your area’s loan limits.
 

How to qualify for a jumbo mortgage

Jumbo lenders usually have stricter underwriting guidelines. The main reason for this is that they’re not backed by Fannie or Freddie, so they’re riskier loans. On the flip side, lenders have more to gain since the dollar value is higher and they can offer additional services to these wealthier customers.

The three common hurdles borrowers must clear to get jumbo-loan approval are larger income, higher credit scores and greater reserves. Borrowers whose scores fall beneath the normal requirements usually have to offset it with a low debt-to-income ratio.

Borrowers should be prepared to show enough reserves, or assets, to cover between six and 12 months’ worth of mortgage payments. The down payment on jumbo loans are, on average, between 10 and 20 percent.