Did you find out that your dream home costs more than you expected? Don’t panic, as the loan experts at Spire Financial can assist you in securing a jumbo loan. Often, a regular mortgage just isn’t enough, which is why jumbo loans were created. A jumbo loan, or jumbo mortgage, is a non-conforming conventional purchase loan. Jumbo mortgages exceed the cap put on by Fannie Mae and Freddie Mac, making these loans essential for borrowers who wish to finance properties that are more expensive than a conventional loan will allow.
Securing a jumbo loan starts with putting at least 20 percent down with a debt to income ratio of around 40 percent. Jumbo loans have much stricter requirements than other purchase loans because of the risk the lender is taking by loaning out such a large amount. You should be prepared to provide a lot of personal information to demonstrate your ability to take on a jumbo loan. Lenders always try to balance the risk depending upon the circumstances of each borrower.
Unfortunately, not all credit scores will meet the criteria for a jumbo loan. Generally, you will need a credit score of 700 or greater in most cases, in addition to significant cash reserves. Be patient, as these purchase loans go through manual underwriting while your personal financial records are carefully studied by financial experts.
Spire Financial has the loan professionals to help you determine if jumbo loans are right for you. They are good for home buyers looking to buy a more expensive property, but keep in mind lenders will often ask for bank statements, previous tax returns, and proof of ongoing income.
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