Buying a single-family home, PUD, condo, or a second home can be financially challenging, but you could make it possible with the right jumbo loans in Colorado. A jumbo loan is designed to help you purchase property in a high-end neighborhood, but it may also be practical if you are planning to buy a larger house. Like the name suggests, it is a bigger mortgage that offers greater financing than typical loans. So, it exceeds the conforming limits for mortgages allowed by Freddie Mac or Fannie May, leading it to be known as a non-conforming loan.
Jumbo loans in Colorado are popular with home buyers and homeowners looking to upgrade their lifestyle by moving into an expensive property, like a single-family detached home. They will not have to worry about prepayment penalties with these loans. However, you need to make sure that your credit score is stellar and exceeds 700. Moreover, the guidelines are stiffer than FHA and VA loans. That’s because these loans often carry more credit risk for lenders as they lack the Freddie Mac or Fannie May guarantee.
Apart from having an excellent credit score, qualifying for jumbo loans in Colorado will require you to have debts that are lower than your income. You need to have accessible cash on hand for your mortgage payments. Take note that the jumbo loan may come with specific income reserves and levels. The loans could be up to $20 million, without the need for mortgage insurance, and with as low as 10 percent down payments. Cash reserves and liquid assets must be equivalent to six months of mortgage payments.
Are jumbo loans in Colorado right for you? Consult with a credible mortgage broker to get started. They can help you find the best non-conforming and competitively priced jumbo loan that will fit your unique requirements.