With a number of loan options being offered in the market today, it can be daunting to find the right information that can help you in your quest for the best mortgage deal. That is why it is imperative that you exercise due diligence; make sure that you have done prior research when you shop around.
One popular loan type available in the market today is jumbo loan, Orange County, CA. Apparently, this is also one of the items that we receive lots of inquiries about. So, to help our readers and prospective clients understand more about jumbo loan, we have provided answers to some of the most common questions sent to us from prospects.
What are jumbo loans? A home loan can be categorized as jumbo when it goes above the standards used for other loans. To date, the loans that ‘conform’ usually have a limit of about USD 424K. Beyond that amount is considered a jumbo loan.
How to qualify for a jumbo mortgage? It is important to realize that jumbo lenders typically have stricter underwriting guidelines; they are not backed by Fannie or Freddie, so they are considered a more risky loan option.
Here are some of the items that help increase your chances for approval:
- Larger income
- Higher credit scores (FICO score is around 740)
- Greater reserves or assets to cover 6 to 12 months payments
- Healthy debt-to-income ratio
- A down payment of 20 to 30 percent
What are the benefits of jumbo loans? They allow you to go outside of Fannie and Freddie limitations. In other words, you can choose from a wider list of options. With this, you can get a more competitive interest rate. You can finance your chosen property without being restricted by the amount limit on conforming mortgages.
What are the different kinds of jumbo loans available? Just like the conforming loans, there are various types of jumbo loans, but basically, they can either be Adjustable Rate mortgages or Fixed Rate mortgages. But there is also called Interest Rate only loan, where you are going to pay only the interest for a certain amount of time.
Do you have more questions about jumbo loan Orange County, CA? Don’t hesitate to contact an expert at HomePlus Mortgage a 800-958-7587 (PLUS).