Jumbo loans are mortgages specifically designed for high-value properties. Conventional loans top out between $647,200 and $970,800 depending on the county. If you need a loan for something more expensive.
What is a Jumbo Loan?
Jumbo loans are mortgages specifically designed for high-value properties. Conventional loans top out between $647,200 and $970,800 depending on the county. If you need a mortgage for something more expensive than Conventional loans can cover, you need a Jumbo loan.
Why consider a Jumbo Loan?
There are many reasons why a borrower might consider a Jumbo loan, such as:
They are shopping for higher-priced properties.
They have good credit, consistent income, and little debt.
They are high-income earners with additional assets.
They are looking to buy investment property.
How do borrowers qualify for a Jumbo Loan?
You will need proof of a strong financial history. This means when you apply, you will need copies of their bank statements and investment accounts. You will also need to provide a full tax return from the most recent year and other income and tax documents like 1099s and W2s.
Having a large amount of cash available may also improve your chances of qualifying for a Jumbo loan.
What is the difference between a Jumbo Loan and a Conforming Loan?
Every type of mortgage has a limit on how much someone can borrow for a given property. Conventional loans, also called conforming loans, max out at a little over $600,000 in most areas. Jumbo loans have much higher limits and are designed for high-value properties.
Jumbo loans have stricter qualification requirements than conforming loans, but MCF Mortgage has flexibility.
What are the interest rates on a Jumbo Loan?
Interest rates for Jumbo loans are competitive with the rates for Conventional loans. The interest rate will vary based on each borrower’s unique financial situation, the property’s location and type, and the specific loan program.