A jumbo mortgage loan is any loan exceeding the Fannie Mae and Freddie Mac maximum conforming loan limit of $510,400. Because of the sales prices in the property areas where we specialize, Park Cities Mortgage is recognized as one of the most experienced jumbo mortgage lenders.
Jumbo Mortgage Loan Qualifications
Since jumbo loans are not purchased by Fannie Mae or Freddie Mac, their underwriting guidelines, although similar, can be more complicated and more restrictive. Examples of their more restrictive guidelines pertain to income, minimum credit scores, debt-to-income, and minimum down payment requirements.
Typically, the minimum down payment requirement is 20 percent, but recently options of 10 percent to 15 percent have become available. These lower down payment options may require a higher interest-rate adjustment.
Advantages of Jumbo Loans
- Larger loan limits allowing for one single loan rather than two
- Both fixed-rate and adjustable-rate options
- Potential financing option in high-market-value areas
Disadvantages of Jumbo Loans
- Stricter income and credit requirements
- Potentially requires a 20 percent down payment or a higher interest-rate adjustment may be applied
- More restrictive debt-to-income ratios
- More than one appraisal may be required
Is a Jumbo Loan Right for You?
Jumbo loans can be a great option for the right buyer.
Not sure if they’re right for you? A jumbo loan might be appropriate for your home purchase if:
- Because of the purchase price, the loan amount needed exceeds the conforming loan limit
- You prefer one mortgage payment rather than two
- You have high credit scores
- You have assets available for a larger-than-typical down payment
Park Cities Mortgage is an expert in jumbo loan options. Jumbo loan options require the expertise of a loan officer knowledgeable about jumbo loan underwriting guidelines. You can rely upon the knowledge and experience of a Park Cities Mortgage loan officer. It is one of the specialties for which we are recognized industry-wide.