Jumbo Loans

May 31, 2024

Are There Alternatives to Conventional Jumbo Loans?

Alternatives to Conventional Jumbo Loans - United Home Loans

If you are applying for a loan above the conforming loan limit, requirements tend to get a little more stringent and sometimes further documents are being requested. This eventually may lead you to believe that qualifying will be problematic. However, your downbeat feeling may simply be due to the fact that you’re applying for a conventional jumbo loan when what you actually need is a specialty option. 

Not all lenders work with specialty investors to provide alternatives to conventional jumbo loans. So, if you’ve had trouble qualifying for a jumbo loan through other lenders in the past, check out these five jumbo options to see if United Home Loans can help. 

10% Down Jumbo

Jumbo loans typically require 20%+ down to qualify. However, if you don’t have 20% to put down on a home, there’s a lower down payment option available! This is also great for buyers who plan to renovate a home and would like to split up how their upfront dollars are invested. In certain markets, 5% down also becomes an option but you’ll want to check with a mortgage banker before making any plans. 

Jumbo ARM

If you don’t plan on buying your “forever” home, adjustable-rate mortgages tend to make the most sense. Jumbo ARMs are also a popular option in inflated interest rate markets. The borrower can lock in a slightly lower rate today with plans to refinance when rates fall. The caveat to this plan, however, is that you should make sure you are 100% comfortable with your initial monthly payment. No one can say whether interest rates will fall for sure. 

Bank Statement Loans

One of the most difficult circumstances for acquiring a conventional Jumbo Loan can be if you are self-employed. This is due to tax write-offs skewing your income as calculated by federal tax returns. But alternatives to conventional jumbo loans help you find a way. By providing 12-24 months of bank statements, self-employed borrowers can acquire a loan of up to $1M through a specialty program called a bank statement loan.

$0 Down Physicians Loans

Why would a doctor need a specialty Jumbo Loan? The answer is medical school debt. The debt-to-income ratio of new doctors makes qualifying for a jumbo loan near impossible. However, with a modified calculation of student debt and down payment options as low as $0, new doctors can become new homeowners. 

Debt Service Coverage Ratio

DSCR loans are specialized loans for real estate investors. The standard routes to buying an investment property can sometimes be either tangled, risky, or unattainable. A DSCR loan uses unconventional qualifying requirements to provide investors with a simpler path to financing as much as $2.5M.

The Jumbo Experts

We have long considered ourselves the Jumbo Experts with the loan options to prove it. We have easy access to answers, an extremely knowledgeable team, and a great culture of borrower education. Whether you’re applying for your first jumbo loan or are an experienced homeowner, we can help you sort out a mortgage that lends itself to great financial success.

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