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WHAT IS A JUMBO LOAN
Jumbo loans are mortgages for where the principal and interest payments exceed the amount funded by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that purchase and manage the vast majority of home mortgages in the United States.
HOW DOES A JUMBO LOAN WORK?
In the mortgage industry, a jumbo loan is a kind of mortgage designed to finance homes with considerable value and unusual conditions, often implying loans exceeding the Conforming Loan Limit. The Federal Housing Finance Agency keeps track of these limitations to determine maximum loan amounts (FHFA). According to this definition, conforming loans are the same as jumbo loans, which may be available in various fixed- and adjustable-rate choices with varying term lengths.
WHO QUALIFIES FOR A JUMBO LOAN?
Jumbo loans are approved using the same basic mortgage approval process. Eligibility is based on income, cash reserves, credit score, debt, employment status, property type, and use. Most lenders demand good to excellent credit, a debt-to-income ratio of 43% or less, three to 24 months of liquid cash, and a 20% down payment. Conforming loans are more straightforward to get than jumbo loans. Lenders incur more financial risk when the government does not guarantee loans. Manual underwriting is done with all considerations; the standards are typically more stringent.
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We simplify the mortgage application procedure while still emphasizing long-term financial planning in our clients' situations. The purchase of your home is the most significant financial decision you will make in your life, and we are dedicated to helping you acquire the mortgage that best suits your requirements. You can rely on our combined expertise of more than fifty years to provide you with excellent service.