What is a Jumbo Loan?
A jumbo loan is defined as, a loan with a loan amount larger than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Any loan amount above $417,000.00 is considered a Jumbo loan.
What is the Jumbo Loan requirements?
Minimum credit score should be no less than 680, however most lenders require a 720 fico score. Maximum debt to income ratios are 32/43. Reserves will be required, but calculated by how many properties are currently owned.
What are the Jumbo loan down payment requirements?
Standard down payment requirement is 20 % down. The larger the loan amount, the larger the down payment. Loan to values will range from 80% loan to value to 60%.
What will my interest rate be?
Generally speaking, jumbo loans interest rates will range from .25 to .5 higher than a conventional loan. Again, credit scores, loan to value , and property type will have an impact on interest rates.
What types of properties are eligible?
Single family homes, and condominiums.
What is the minimum and maximum loan amounts?
$417,000 is the minimum , and $3,000,000.00 is the maximum.
What kinds of loans do Jumbo programs offer?
Fixed rate loans – Most jumbo Mortgages are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same for the entire loan period. With a fixed rate Conventional Mortgage, you always know exactly how much your monthly payment will be. There are no prepayment penalties on any of these loans.
Adjustable rate loans – With a jumbo adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. Jumbo Loans mainly use the Constant Maturity Treasury Index (CMT) or the London Interbank Offered Rate Index (LIBOR) to calculate the changes in interest rates. Jumbo ARMS are offered with initial fixed rate periods of 3 years, 5 years, 7 years and 10 years.