As a general statement, the market for jumbo loans, those over the conforming loan limit set by the FHA for a particular market, are easier to get today than they have been in the past. This doesn’t mean there aren’t substantial qualification factors, but there are more jumbo mortgage lenders in the market that provide low rates and lower down payments than in the past.
Understanding if a jumbo loan is a good option for your buying needs is always an important first step. Some of the best jumbo mortgage lenders will walk potential applicants through the pros and cons of these large sized loans and help the individual or couple determine if this loan is in their best interest. There are several benefits to these loans, including getting into a home in a very desirable market at a low fixed interest rate.
Choosing the best lenders that offer jumbo loans is also important. Lenders that offer low interest rates, top customer support and loan packages that work for the buyer are all essential with this type of mortgage product.
Explains Qualification Factors
All jumbo mortgage lenders set their own underwriting policies, which means there is more variation in the requirements for different mortgage companies. Talking to different lenders and determining the qualifications required and the interest rates for the loans is always the first step.
Discusses the Down Payment
As these loans cannot be managed through Fannie Mae and Freddie Mac, there is a requirement for a higher down payment than for a conforming loan. However, for many people considering a jumbo loan, the down payment is not a concern as they have cash on hand. Additionally, the down payment on these loans is more in line with the smaller loans, with some lenders offering 10% or less.
Keep in mind that with a jumbo loan, as with any conforming loan, the more that can be paid up front in the down payment the better the interest rate and loan options that will be available to the buyer. Top lenders will discuss these variables and help buyers to find the right combination for their financial needs.
To talk to our Guaranteed Rate team of jumbo mortgage lenders about your options for these mortgage products, give us a call today.