Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. Typically Jumbo Loans require a higher down payment than traditional loans.
The Jumbo loan is a loan that needs to be manually underwritten, on a case by case basis, so its really hard to come up with any particular specifics to speak to intelligently and generically. The borrower in the market for a Jumbo Loan has a wide variety of products available to them, as every source of lending makes their own rules on what they will allow in underwriting and how they will price it. Jumbo Loans do not come with traditional guidelines in the same way a Fannie or Freddie backed loan do. This means that every lender will look at each individual loan in a completely different way, opening up real opportunities to customize a loan that is right for you as a particular borrower.
Often times we see borrowers in the market for jumbo loans that own their own business, receive large amounts of income from commission or bonus structure, or who otherwise don’t fit in a traditional box many standard W2 wage earners fit into. With different underwriting guidelines this can be an area where creativity is prized and valued in structuring a loan, which is good for the borrower. This does, however, lead to pricing that is sometimes higher than more traditional financing sources. As with every mortgage, there are trade offs between ease of proving income, assets and collateral and pricing in the market place.
We work with a vast array of lenders at Mortgage Solutions, so we have the ability to really shop hard among our different lending options to find our borrowers the deals that work best for them. If you are in the market for a Jumbo Loan I’d love to hear how I can help you. Please email me at firstname.lastname@example.org, call at 832-557-1095 or apply here now!