Jumbo Mortgages Qualified or Non-Qualified

When you need a larger-than-normal loan amount.

As the name implies, a jumbo loan covers a larger-than-normal loan amount. Jumbo loans can be used for primary homes, investment properties and vacation homes.

A jumbo mortgage is a type of loan that is used to purchase a home that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Jumbo mortgages are generally used to finance luxury homes, high-end properties, and homes located in expensive areas. These loans typically require a larger down payment, higher credit score, and a stronger financial background than conventional loans.

Jumbo mortgages may be offered as either fixed or adjustable rate loans. Fixed rate loans offer the same rate and payment throughout the life of the loan, while adjustable rate loans have a rate that can change over time. Borrowers can also opt for a hybrid ARM, which combines elements of both fixed and adjustable rate loans.

When applying for a jumbo mortgage, borrowers should be aware of the additional costs associated with these loans. These costs include a larger down payment, higher interest rates, and higher closing costs. Borrowers should also be aware that lenders may require additional documentation, such as proof of income and assets, for jumbo mortgage applications.

In addition, jumbo mortgages are not backed by the government, so lenders may require a higher credit score and more stringent underwriting standards. Borrowers with a low credit score or limited financial resources may find it more difficult to qualify for a jumbo mortgage.

Overall, jumbo mortgages are a great option for prospective homebuyers with the financial means to purchase an expensive home. Borrowers should carefully consider their financial situation and the costs associated with jumbo mortgages before applying. With the right preparation and guidance, borrowers can find the best deal on their jumbo mortgage.

Best uses for Jumbo Mortgages

Jumbo loans are used to cover larger-than-normal mortgage amounts
Jumbo loan limits vary by lender and geographic location
Interest rates on jumbo loans also different from traditional mortgages
There are stricter underwriting guidelines for jumbo loans
Payment schedules and other details are the same as traditional mortgages