You probably have encountered a term called “jumbo” loan in your search for home loan options. Now, you are wondering whether or not it is the best option to take for a new home purchase.
In simple words, jumbo loans are a type of loan that exceed the dollar amount loan-servicing limits defined by GSE’s Freddie Mac and Fannie Mae. Meaning, it is a non-conforming loan.
The amount of the property is one of the items that you should know early on to determine whether or not applying for a jumbo loan is the best course of action to take. If the anticipated value of the property in the Texas area falls outside the conforming limits, a jumbo loan is indeed an option to consider.
Now, aside from jumbo loan limits, Texas, what are other important items that you need to put into consideration when applying for a jumbo loan?
There are three common hurdles that borrowers must clear to increase the chances of getting jumbo-loan approval. These are: (1) larger income; (2) credit score; and (3) greater reserves. Do you think you can hurdle these particular criteria? Not sure? Consider consulting a highly qualified mortgage loan company such as the HomePlus Mortgage. (Part of our assessment is to explain to you every nook and cranny of jumbo loan limits, Texas and other aspects that can have a significant impact to your application.)
Aside from jumbo loan limits, Texas, you need also to consider the following before applying for a jumbo mortgage loan:
Higher FICO score. FICO scores, the credit scores created by the Fair Isaac Corporation, which range between 300 and 850. In general, scores below 620 often find it difficult to get financing at favorable rates.
To consider a jumbo loan, the FICO scores have to be higher. Experts suggest that you have an average of 740.
Enough reserves. Based on expert advice, you have to have enough reserves or assets when applying for a jumbo loan. You should have an amount put in place that is equal to 6 to 12 months’ worth of mortgage payments.
Bigger down payment. It is important to note as well that the down payment needed on jumbo loans are between 10 and 20 percent. Anything lower than that would entail paying for a loan in higher rates.
Looking for a reputable company to help you for a mortgage jumbo loan Texas? You have come to the right place.
Talk to an expert at HomePlus today at 800-810-PLUS (7587).