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Raising the Roof with Jumbo Loans: Your Key to Luxury Real Estate


Options:

-No Docs – no income documents are required for approval.

-Full Docs – requires 2 years tax returns.


How does Jumbo loan work?


A jumbo loan is a type of mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Conforming loan limits are the maximum loan amounts that government-sponsored entities like Fannie Mae and Freddie Mac can purchase or guarantee. Any mortgage loan that exceeds these limits is considered a jumbo loan.


Key characteristics of jumbo loans include:


Higher Loan Amounts: Jumbo loans are designed for borrowers who need to finance more expensive properties, typically those with purchase prices that exceed the conforming loan limits. Since there are no government guarantees or backing for jumbo loans, lenders typically require higher credit scores and stricter underwriting criteria to mitigate their risk.


Non-Conforming: Jumbo loans are non-conforming loans because they don't conform to the guidelines and maximum loan amounts set by Fannie Mae and Freddie Mac. As a result, jumbo loans are considered riskier for lenders.


Higher Down Payments: Lenders often require larger down payments for jumbo loans. Typically, a down payment of 20% or more of the property's purchase price is common, although some lenders may require even larger down payments.


For more information or to go over your own scenario, please contact mc at 408-393-2068

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