What is A Jumbo Mortgage and How Do You Qualify?

What is A Jumbo Mortgage and How Do You Qualify?

Sep 08, 2016 (0) comment

A jumbo mortgage is a loan that does not adhere to the conventional conforming loan limit. In short, if you meet certain requirements, you’ll be able to qualify for a jumbo mortgage which includes benefits above and beyond a typical mortgage loan: this is especially useful when you’re in need of extremely high loan amounts. As a first time home buyer, you should be aware of the various loan options available to you, all of which can help in achieving your home owning goals, meet your requirements and assist in your financial limitations.

Let’s explore in detail more about the Jumbo Mortgage Loan.

What is Jumbo Mortgage?

In simple terms, a jumbo mortgage loan is an amount of money being loaned which does not fall within the margins set by the Federal Housing Finance Authority. Of course, the waiver comes with certain requirements and qualifications to back up the high amount of the loan.

Jumbo Mortgage Benefits

  • Access to a higher loan amount than traditional loans
  • An opportunity to buy exquisite and luxurious homes: primary/secondary or even vacation homes.

Jumbo Mortgage Loan Requirements and Qualifications

  • A healthy credit history and high credit score as required by lenders.
  • The requirement of higher reserves, since you’ll need to pay higher down payments, around 20 % of the purchase price.
  • The requirement of appraisal of the house, sometimes more than once, since luxury homes are subject to more market risks than conventional homes.
  • Higher interest rates, due to higher risk quotient.

Buying a luxurious home that’s far beyond your financial situation isn’t as impossible as it may seem with a Jumbo Mortgage Loan. If you think that a jumbo loan may be just what you’re looking for, hiring a mortgage expert could be beneficial to you in choosing the right plan. Experts at Drew Mortgage Associates, one of the top mortgage lender in MA, can guide you to understand the requirements involved in receiving Jumbo Mortgage Loan.

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