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    Email: vlong@uamco.com

  • Jumbo Loans

  • Jumbo mortgages are home loans that exceed the conforming loan limit, which is most parts of the US is $417,000. A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you.

    Due to the size of these loans, qualifications can be more stringent.  Some of the factors considered are:

    • Credit history - Conventional loans are a good choice for borrowers with very good credit, which generally means a FICO score of 700 or higher.
    • Financial strength - The maximum debt-to-income ratio for jumbo loans is typically lower than the debt ratios for conforming loans under $417,000.  In essence, this means that you a lower percentage of your monthly income can be used for your mortgage payment.  In addition, jumbo loan borrowers may have to show significant cash reserves in order to qualify.
    • Down payment - There is no private mortgage insurance option with a jumbo mortgage, so the required down payment will be larger - typically 20 percent.  There are programs that may allow as little as 10% down, but those programs will come with higher credit qualifications and lower debt ratio requirements.
    • Property appraisal - The property appraisal must support the purchase price for the home and the mortgage the borrower wants.

    Jumbo mortgages are a good solution for well-qualified borrowers who are looking to buy a higher-priced home.

    Contact me if you for more information if you require financing above $417,000.