Credit Requirements for Michigan Jumbo Mortgages
Some areas of the country have higher conforming loan limits than others. However, Fannie Mae and Freddie Mac have set their conforming loan limits at $417,000 throughout the entire state of Michigan. Depending on what part of Michigan you plan to purchase your home you could be looking to spend well over that amount, in which case you would need a Michigan jumbo home loan. Although the requirements for a jumbo mortgage loan are similar to those of a conforming loan, many lenders have more strict qualifications because jumbo loans are a higher risk for them.
In order to qualify for a jumbo mortgage loan you are going to need above average credit. When a lender is deciding whether or not you will qualify for a home loan your credit score is very important. A credit score is an indicator as to whether or not you have a history of making timely payments on your debt. US Bank requires a borrower to have a minimum FICO score of at least 680 to qualify for a jumbo loan. A credit score of 680 will also require you to put at least 45% down on your home purchase. However, according to US Bank, a credit score of 720 will only require 30% down. As a rule of thumb, the better a borrower’s credit score, the smaller down payment they will have to make.
Although throughout the entire state of Michigan there are very affordable homes, some areas of Michigan can be quite expensive. If you are looking for a home in Bloomfield Hills, Orchard Lake, Grosse Point, or many other parts of Michigan, a jumbo mortgage loan may be just what you’re looking for. Feel free to contact a qualified loan officer with United Home Loans today to find out what types of mortgage programs are available to you. Call (708) 531-8388 today!