Jumbo Home Loan Income Verification Requirements
Lenders take a bigger risk with jumbo home loans because they are not backed by Fannie Mae or Freddie Mac. Because of the bigger risk to lenders, jumbo home loans usually have slightly higher interest rates than conforming home loans, and underwriters have more strict guidelines. A borrower’s income is heavily weighted when trying to purchase a jumbo home loan.
As with any loan borrowers will need to provide pay stubs from a minimum of 30 days prior to the initial loan application date. The pay stubs must have accurate year to date earnings and provide adequate information to calculate yearly income. Two years of W2s will also be required along with the two most recent years IRS tax transcripts. Most lenders will also require a minimum of two year history in the same line of work. If a borrower is self-employed lenders will typically require a minimum of 3 years history of self-employment. Capital gains and passive income can also be used when qualifying for a jumbo home loan, but you will be required to provide a minimum of two years verification to support this.
The strict underwriting requirements for jumbo home loans help determine qualified borrowers. A lender does not want to give a loan to someone who does not have the potential to pay back the loan. If you are currently in the market for a jumbo home loan contact United Home Loans today to speak with a mortgage banker about jumbo mortgage programs available to you.