We are Jumbo Mortgage loan specialist in Arizona, Colorado, Florida, Idaho, Texas, Utah & Wyoming that offers jumbo loans with no maximum loan amount.
As a jumbo mortgage broker, we have multiple lenders nationwide that specialize in Jumbo Loans and super jumbo loans.
By being a jumbo mortgage loan broker, we get wholesale pricing which gives better deals with their jumbo loans and also saves our borrowers thousands and tens of thousands on their jumbo loans.
We get better loan terms, higher loan to values and more loan options.
We provide lower down payment requirements than most banks, offer more flexible guidelines to qualify, and some don’t even require mortgage insurance.
A jumbo mortgage loan is also called a non-conforming mortgage. A jumbo loan doesn’t “conform” to the guidelines of either Fannie Mae nor Freddie Mac, which were created by Congress in 1938 and 1970. Fannie Mae and Freddie Mac help the mortgage market by purchasing conforming mortgages from lenders. This in turn provides liquidity to make more mortgages.
Qualifying for a Jumbo Mortgage
Jumbo mortgages have similar qualifying guidelines as a conforming loan. Lenders will look at credit score, down payment size, total monthly debt obligations relative to income (called your debt-to-income ratio), and money left over after closing.
Credit Score Requirements
Credit score requirements are similar for conforming and jumbo mortgage loans:
We provide jumbo loans with a minimum of a 600 Fico score. By having a 720 or higher score opens up the door to better loan terms. By having a top-tier credit score of 760 or greater will give the very best jumbo loan terms.
Assets / Reserve Requirements
For money left over after the loan closes that is required to be in the borrower’s bank account or retirement account(s), this is called reserves, also known as post-closing liquidity.
Jumbo loans are more stringent than conforming loans.
The best terms for jumbo loans are when a borrower has 12 months of reserves after the closing costs are calculated.
Some jumbo loans require less and down to no reserves, but this, in turn, will result in higher rates.
Jumbo loan reserve requirements range from 0 to 12 months, depending on factors such as credit score, down payment, and DTI.
Debt-to-income ratios
Most conforming loans with 20 percent down or greater, lenders will usually require that your total monthly housing payment plus all other monthly bills don’t exceed 49.99% of your income.
Jumbo loans vary from a 40.00% DTI for the best loan terms up to a 55% DTI for Non-QM Jumbo Loans.
Call Ben Gerritsen to have him help you with your jumbo mortgage loan.
