If you intend to apply for a mortgage loan to buy a new home wherein the amount exceeds the limits set by Fannie Mae and Freddie Mac, then what you are most likely looking for are jumbo loans, Orange County, CA. This type of loan can be a big help if you are buying a mansion – or even a conventional home located in high-priced areas such as the Silicon Valley.
Before you accept any deals on jumbo loans, Orange County, CA, it will work to your advantage if you arm yourself with essential information about this type of loan, which forms part of your deciding criteria.
Here are some things you need to know about jumbo loans:
The loan limits
Knowing the loan limits allows you to determine whether you need to apply for a jumbo loan or just a conventional one. For 2020, the loan limit issued by Fannie Mae and Freddie Mac in much of the country is USD 510,400. In the case of much of California, the loan limit is USD765,600. So, figure out the numbers before making any decision.
As stated above, the main benefit of jumbo loans is that you can borrow more than the limits imposed by Fannie and Freddie. But apart from that, you can also use it to finance more of the home’s cost instead of tying up cash. That makes jumbo mortgage a helpful financial tool and part of an overall investment strategy. (Your mortgage broker should be able to explain to you in more details the benefits of jumbo loans)
The fact is that lenders usually impose stricter underwriting guidelines for jumbo loans. Being familiar with them allows you to know exactly the course of action to take and increase your chances for approval. The most common hurdles you need to deal with to get approved are the income requirements, higher credit scores, heftier reserves.
Take note of the following:
- As for the FICO, you need to aim for a score of 740
- Be ready to show enough reserves, liquid assets that can cover between six and 12 months’ worth of mortgage payments.
- The down payment is typically between 10 and 20%
Are you planning to apply for jumbo loans, Orange County, CA? Talk to HomePlus Mortgage today.
Contact us at 800-810-PLUS (7587).