Allows you to purchase single family detached, condo’s, pud’s and single-family second homes with no prepayment penalty.
These loans are much like the Conventional loan except they exceed the loan limit. These loans are intended for borrowers with excellent credit and looking to finance amounts greater than the amount allowed by Fannie Mae or Freddie Mac.
So how is qualifying for a Jumbo mortgage? Conventional guidelines are much more rigid than VA or FHA loans. When you jump the scale into Jumbo status, it gets even more rigid. You will face much more rigid credit requirements because jumbo loans carry a lot more credit risk for the lender, which is contributed due to their lack of Fannie Mae or Freddie Mac guarantee. So, what will you need to get approved?
- A stellar credit score above 700
- A low debt to income ratio
- Have accessible cash on hand to cover your mortgage payments
- Specific income levels and reserves
- Liquid assets and cash reserves equal to 6 months of mortgage payments
- Down payments as low as 10%
- No Mortgage Insurance (MI) requirement
- Loans up to $20 Million