Jumbo (Non-Conforming) Loans
A Jumbo loan is for borrowers looking for a loan amount that exceeds the conforming loans limits; Jumbo loans start at $750,001. This loan is similar to traditional mortgages, but due to the increased risk to the lender, there are more stringent underwriting guidelines.
Benefits of a Jumbo Loan
- Borrower can access larger loan amounts for expensive properties or construction of a dream home
- No need to break up your borrowing needs across two loans
- No need to access savings for large down payments
- Flexible 30-year fixed rate or adjustable rate terms
Is a Jumbo Loan right for me?
If the property you are looking to purchase has a higher sales price and you will require a loan amount of $750,001 or more then a Jumbo Loan is what you need. Examine your finances closely and locate a lender only when you’re confident the larger repayment schedule will not be overwhelming.
You may be eligible for a Jumbo Loan if...
- Debt ratios do not exceed 43% of pre-tax income including PITI, installment debt and minimum revolving credit card payments
- You can provide 2-years proof of income
- You have a credit score of at least 680
- You have 20% or more for a down payment
- The property meets lender’s qualifications