What are Jumbo Loans?
Jumbo loans are for borrowers that need a larger loan than the Conventional Loans will allow in their county. Conventional loans have a limit.
Jumbo Loans are funded by investors and mortgage lenders that write their own guidelines. Typically they are similar to Fannie Mae or Freddie Mac but they are sometimes strict because of the higher loan amount and price of the home.
What are requirements for a Jumbo Loan?
- Jumbo loans typically want a larger down payment then conventional
- Jumbo Loans also prefer a very strong FICO score
- Jumbo Loans will require reserves. Reserves are a savings that could cover a 6, 9 or 12 months of mortgage payments.
- Jumbo loans will prefer a lower DTI. 41% - 43% DTI for your gross income compared to your monthly mortgage payment
- The better your FICO score the better your interest rate
Call me to see if a Jumbo loan will work in your situation
We can help you find the right financing to achieve your goal of owning a home. Debbi Galvan is focused on creating lifelong partnerships with our clients, and we would love the chance to work with you. Contact us today to learn more about FHA loans.