Jumbo loans are used to finance homes with loans exceeding the loan limits set by Government Sponsored Entities (GSEs). It is suitable for borrowers who want to buy luxury homes or refinance existing large mortgages. Jumbo loans allow you to have larger loans at a lower rate because it does not conform to the requirements set by Fannie Mae and Freddie Mac.
You may be eligible to qualify for a jumbo loan if you can meet these requirements:
• Have a decent credit score (680 and above)
• Have a low debt-to-income (DTI) ratio (under 43% at least)
One thing to keep in mind: these loans will naturally come with higher interest rates. To qualify, a good credit history is essential, so double check all credit reports for any potential inaccuracies. In general, being accepted for a jumbo loan is difficult, so you must also be able to prove that your income is high enough to be able to afford monthly mortgage payments.
Feel free to Contact Leif Boyd’s division today for any inquiries about jumbo loans!
Fannie Mae® is a registered trademark of Fannie Mae.
Freddie Mac® is a registered trademark of Freddie Mae.
Leif Boyd – Did a great job with one of my buyers that I referred to him so they could finance their first home. Through the entire process he was there to answer their questions and keep things moving. I would recommend any first time buyer that is looking for a FHA loan to call him because he is one of the few lenders that I have met in the past 2 years that actually cares about the client more than himself.Tim Taggett