If you are looking for homes on the pricier end, you will probably hear the term “Jumbo Loans”. It’s important to have a basic understanding of the Jumbo Loan program to know what it can offer you.
Jumbo Loans are for mortgage amounts which exceed the conforming conventional loan limit that are set by Fannie Mae and Freddie Mac.
When qualifying for a Jumbo Loan, it is common to expect more stringent underwriting guidelines such as the following:
Interest rates for Jumbo Loans are customarily higher than conventional programs, and buyers may also look to Adjustable Rate Mortgage (ARMs) as an alternative option.
Each lender can have their own underwriting criteria, but be cautious of the following potential red flags:
Without the right assistance, qualifying for a Jumbo Mortgage can be very difficult and overwhelming. It’s always best to discuss your options with a lender you can trust like Metroplex Mortgage Services. Our financing expertise has helped thousands of homebuyers become happy homeowners and we can help you too!
If you are in the market for a home it is important to become pre-qualified. You can get started in less than 5 minutes! Or you may contact us with any questions you may have.