Go Big and Go Home
You have finally found the perfect home, but the loan you need is bigger than the conforming loan amount. What do you do? This is where a jumbo loan comes into play on your homeowner’s journey. A jumbo loan is perfect for those who are in a strong financial position and want to obtain a large loan for a higher-priced home.
A jumbo loan is considered a non-conforming mortgage because the loan amount is greater than the loan limit for a conforming mortgage, which are loans bought by Fannie Mae, Freddie Mac, FHA and VA. The 2018 limit on conforming loans in Denver County is $529,000. If the loan you need is higher than the threshold in your area, and you meet the financial requirements, then you may want to start looking into a jumbo loan.
Don’t be too concerned with a jumbo loan though, in today’s market Jumbo loan rates are similar to conforming rates and only vary slightly.
To take advantage of the most competitive Jumbo rates on the market, homebuyers need to be in a secure financial situation. That means, having a high credit score, a debt-to-income ratio at or below 43%, a solid employment history and 20% down payment.
You might meet all of the criteria above, but don’t have enough money saved for the 20% down payment. The non-conforming market continues to get more competitive everyday and more and more products are coming to market. There are plenty of Jumbo loans today that offer 5% and 10% down payment options.
Are you trying to go big and go home? Let me help you refinance or purchase your property whether you are a first-time home buyer, trying to finance a vacation home, or just looking for a better rate.