Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
| A jumbo loan is a loan that exceeds the conforming loan limits established by the government sponsored entities, Fannie Mae and Freddie Mac. Underwriting guidelines are much stricter than those on traditional mortgages and it’s not uncommon to see lenders demanding two appraisals to be done. Interest rates will typically be higher than those on conforming loans as well. These loans can be used not only for personal residences, but second homes and investment properties. It’s also important to realize jumbo loan limits not only vary by state but can vary by county as well. As of 2022 the conforming loan limit is $647,200 meaning this would be the minimum amount for most jumbo loans. The overall maximum limits on jumbo loans can vary greatly by lender, ranging from $1 or $2million for some lenders up to $10 million for others. |
| A jumbo loan is a loan that exceeds the conforming loan limits established by the government sponsored entities, Fannie Mae and Freddie Mac. Underwriting guidelines are much stricter than those on traditional mortgages and it’s not uncommon to see lenders demanding two appraisals to be done. Interest rates will typically be higher than those on conforming loans as well. These loans can be used not only for personal residences, but second homes and investment properties. It’s also important to realize jumbo loan limits not only vary by state but can vary by county as well. As of 2022 the conforming loan limit is $647,200 meaning this would be the minimum amount for most jumbo loans. The overall maximum limits on jumbo loans can vary greatly by lender, ranging from $1 or $2million for some lenders up to $10 million for others. |
| When trying to qualify for a Jumbo loan it’s good to realize that requirements are usually much stricter than standard mortgage loans. The reason for this is that Fannie Mae and Freddie Mac don’t back these loans, therefore the lender takes on considerably more risk. The increased loan amount also increases risk for the lender. To get approved for a jumbo loan your focus should be on these three areas: (1) Income (2) Credit Score & (3) Down Payment |
When trying to qualify for a Jumbo loan it’s good to realize that requirements are usually much stricter than standard mortgage loans. The reason for this is that Fannie Mae and Freddie Mac don’t back these loans, therefore the lender takes on considerably more risk. The increased loan amount also increases risk for the lender. To get approved for a jumbo loan your focus should be on these three areas: (1) Income (2) Credit Score & (3) Down Payment |
| Getting the best jumbo loan rate on your own will take a lot of time and research compared to shopping for a conventional or government home loan. Additionally, even focusing on obtaining the lowest possible jumbo rate may not be the best approach as it may not be the best product for you or one that you’d ultimately qualify for. I have access to over a dozen jumbo investors and can easily cross reference their ever changing requirements to your personal profile and can help you secure a product that’s the right fit for your particular situation and circumstance. |
| Getting the best jumbo loan rate on your own will take a lot of time and research compared to shopping for a conventional or government home loan. Additionally, even focusing on obtaining the lowest possible jumbo rate may not be the best approach as it may not be the best product for you or one that you’d ultimately qualify for. I have access to over a dozen jumbo investors and can easily cross reference their ever changing requirements to your personal profile and can help you secure a product that’s the right fit for your particular situation and circumstance. |
High Credit Score: Most borrowers will want to have a credit score of 740 or higher before considering a jumbo loan. Down Payment: Typically needs to be 10 – 20% of your home’s purchase price. Income: Requirements vary greatly. Jumbo loans can differ significantly on income documentation. W-2, bank statements and proof of rental income if buying a multi-family or investment property are what are most widely used. Debt-to-income Ratio: Jumbo mortgage lenders are typically very strict with this, most will not go above 43% back-end DTI while many require a DTI much less. |
High Credit Score: Most borrowers will want to have a credit score of 740 or higher before considering a jumbo loan. Down Payment: Typically needs to be 10 – 20% of your home’s purchase price. Income: Requirements vary greatly. Jumbo loans can differ significantly on income documentation. W-2, bank statements and proof of rental income if buying a multi-family or investment property are what are most widely used. Debt-to-income Ratio: Jumbo mortgage lenders are typically very strict with this, most will not go above 43% back-end DTI while many require a DTI much less. |
When you’re researching current Jumbo mortgage rates, you’ll likely see variations from one lender to another. Interest rates differ because lenders price their loans differently. It’s helpful to have an idea of average rates over time to help understand Jumbo loan interest rates. The historical rates below are national averages provided by a third party company.
Reach out to me for further detailed information on Jumbo loan programs.