Understanding Jumbo Loans
If you are in the market to purchase the luxury home of your dreams, a Jumbo Loan could be perfect for you. A Jumbo Loan is a home mortgage loan that allows financing that exceeds $424,000 which is the conforming loan limit in most areas. Jumbo loans may be your best option if you need to borrow between $424,001 and $3,000,000 for a home purchase or refinance, and are looking for higher but flexible rates and terms, and no pre-payment penalties.
Jumbo loans do call for somewhat stricter underwriting requirements than in previous years and compared to conforming loan requirements. You will generally need a 10 – 20% down payment and 2 – 6 months of reserves to qualify. However, the rates on the fixed or adjustable rate programs are comparable to conforming rates and offer flexibility for financing with a larger loan. We can discuss your needs and put together a plan that will work within for your situation.
I can offer several strategies to help you purchase the home of your dreams. Call me today to setup an appointment!