Chicago Jumbo Loans
Although conforming loan limits are higher in other high cost areas of the United States, the Chicago area is limited to the standard Fannie Mae and Freddie Mac limit of $453,100 (2018). Therefore, any loan amount above that amount for a one-unit property in the Chicago area is considered a jumbo mortgage loan. Thankfully, in today’s current lending environment, there is no shortage of jumbo loans offered in Chicago.
Choosing the Right Jumbo Mortgage Program
Are you purchasing a condo that you may keep for a 7 to 10 year time period? If so, you may want to consider a 7/1 ARM or 10/1 ARM. These mortgage loans provide a fixed period of 7 and 10 years respectively. So, these products basically function as fixed rate loans for that period of time and then convert to a one-year adjustable.
Are you at a stage in life where many of your major expenses have been paid, such as college tuition for dependents? If the answer is yes, you may want to consider a short term fixed rate loan such as a 15 year jumbo fixed. This type of loan can save you over $100,000 in interest for higher loan amount jumbo loans.
Or, are you purchasing a single family home in one of Chicago’s many neighborhoods where you plan on raising a family and staying for a very long time? If that is the case, then a jumbo 30 year fixed is probably the right loan for you.
Preparing for the Jumbo Mortgage Application
Jumbo loans are still a bit more difficult to obtain than conforming loans are so be prepared to provide a fair amount of documentation. Most lenders will want you to provide the following documents:
- Last two pay stubs
- W2 forms and federal tax returns for the last two years
- K1s and business tax returns for the last two years, if applicable
- Bank and investment statements for the last two months
- Name and number of your insurance agent
Regardless of what type of property you are purchasing or what type of loan program you are interested in, United Home Loans can help. Contact us below to obtain a custom interest rate quote.