jumbo loans

February 27, 2019

Some Important Questions to Ask About Jumbo Loan Orange County, CA

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 […]
June 24, 2019

Answering Some Important Questions About Jumbo Loans, Irvine, CA

Thinking of going for a jumbo loan? There are a number of important considerations that you need to take into account prior to your application. Note that taking out a jumbo loan is a big decision to make. With higher the loan amounts come with higher monthly payments to deal with. To give you some useful insights about whether or not jumbo loans, Irvine, CA, are right for you, we have shared below some questions to ask yourself for assessment. Consider the following: Is jumbo loan right for me? The truth is, jumbo loans are not made for everybody. They are outside the limits of the size of loans that Fannie Mae and Freddie set. In other words, they are not “conforming loans”. This type of loan is not designed to help buyers stretch the limits of how much they can borrow. Instead, it is designed to help financially secure buyers invest in home that are pricier than average. Am I prepared to meet the stricter qualifying requirements? It is important to note that jumbo loans, Irvine, CA, are not guaranteed by Fannie Mae and Freddie Mac, which means they are perceived as riskier than conforming loans by lenders. More risks mean stricker requirement on jumbo loans. Here’s a list of some items that you need to take into account: Credit score – Jumbo loans require a minimum score of 680 Debt-to-income ratio – The sum of all your debt divided by your gross monthly income; this is used to […]