Jumbo home loans exceed the financing limits set by the Federal Housing Finance Agency (FHFA). These loans can be a great option for homebuyers looking to finance a high-value property. However, it’s essential to understand that jumbo loans come with more stringent qualification requirements than traditional home loans.
In addition to having a good credit score, a low debt-to-income ratio, and proof of income, jumbo loan applicants must have a significant down payment and cash reserves to cover several months’ worth of mortgage payments.
Jumbo loans, also known as non-conforming conventional mortgages, offer a variety of term options as well as fixed or adjustable rates. However, jumbo loans are not guaranteed by Fannie Mae or Freddie Mac, so these types of loans are often riskier for the mortgage lender and, therefore, can be more challenging to qualify for.
Benefits of Jumbo Loans
- Offers over $726,200
- Good debt-to-income ratio
Another advantage of jumbo loans is that they can be used for a variety of property types, including single-family homes, multi-unit properties, and condominiums. Homebuyers should work closely with a mortgage broker like The Mortgage Firm North Central Florida to understand the unique requirements and qualifications of jumbo loans, as they can vary significantly based on the lender and the specific loan product.
If you are interested in applying for a Jumbo Home Loan with The Mortgage Firm North Central Florida, make sure to view our loan checklist and contact us with any further questions!