Qualifying for a Jumbo Home Loan
While jumbo home loans are very similar to conforming loans, there are a few differences. One of these differences is the requirements you must meet in order to qualify for a jumbo home loan. Because of the high loan amounts of jumbo loans, and the fact that they are a higher risk to the lender, there are stricter regulations for jumbo loans.
A conforming loan can require a down payment as little as 5%. However depending on the program, a jumbo loan can require a 20% down payment or more. A borrower who wants a jumbo home loan will need to have plenty of money saved up; not just for the down payment. Many lenders will require that a borrower have up to a year in reserves.
In order to qualify for a jumbo home loan having excellent credit is a must. You can qualify for conforming home loans with moderate credit scores; this is not the case for jumbo loans. Depending on your loan value a lender could require that you have a credit score of 720 or above.
Interest rates for jumbo home loans are near historic lows. If you are interested in discussing jumbo home loan programs or have any other questions, contact us below or at 708-531-8388.