Illinois Jumbo Mortgage Loans
Fannie Mae and Freddie Mac limit conforming loan amounts at $417,000. In Illinois, however, there are some areas where purchasing a home will cost quite a bit more than that. If you are looking for a home in Winnetka, Lake Forest, Oak Brook or many other affluent Chicago area suburbs, you will more than likely be in the market for an Illinois jumbo mortgage loan.
A jumbo loan covers all loan amounts above $417,000, typically up to $2 million. Some banks are willing to offer jumbo mortgage loans above $2,000,000 but credit underwriting requirements are extremely tight for those loan amounts. Rates for jumbo mortgage loans have never been better. Currently, many Illinois jumbo mortgage rates are actually priced lower than conforming mortgage loans. This was almost unheard of prior to 2013.
Most jumbo loan programs will require that you make a down payment of at least 20%, however some will allow as little as 10%. As your loan amount increases, so will your down payment requirement. Depending on the amount of money you are trying to finance, most lenders will require that you have credit scores of 720 and above. Lenders have more strict requirements for jumbo home loans because they pose a higher risk than a conforming loan.
If you are looking for a home in Illinois and you are in need of a mortgage that exceeds the conforming loan limits feel free to contact United Home Loans at (708) 531-8388.