Jumbo Loans

Jumbo loans are a good choice if you meet the following requirements:

  1. Need a loan over $417,000. In most counties across the nation, the cutoff for doing a regular conforming conventional loan is $417,000.  If you need a loan in excess of that amount, you will most likely have to consider a jumbo loan.
  2. High down payment. A typical jumbo loan requires a 20% down payment.  We have a few lenders that will do jumbo loan with only 5% or 10% down under certain conditions.  Talk to us about which jumbo program would work best for your circumstances.
  3. Low DTI. Jumbo loans require borrowers to have a relatively low debt-to-income (DTI) ratio. Typically borrowers are required to be below a 43% ratio (meaning your debts as a percentage of your income can be as much as 43%).
  4. High credit score. Lenders are very particular about jumbo loan qualifications.  Because the loan is for such a high dollar value, they require borrowers to have an excellent credit score, usually over 680.

A few jumbo loan facts:

  1. Jumbo loans have higher interest rates. Jumbo loans have slightly higher interest rates than a typical conventional product.
  2. More stringent guidelines. Jumbo loans have more stringent guidelines than a standard loan product.  A solid work and financial history is a must.

FHA also offers a jumbo loan product with different requirements.  Please consult one of our friendly loan officers today to help you determine which loan option is the best for your particular situation!  We’ll do our best to be “The Bright Spot in Mortgage Lending!”