If you have been doing some work for your next mortgage loan, you probably have encountered a term called “jumbo” loan. It is a type of loan that exceeds the dollar amount loan-servicing limits defined by GSE’s Freddie Mac and Fannie Mae. In other words, it is a non-conforming loan.
The question you might have in might right now: should I consider mortgage jumbo loan, Orange County, CA?
There are three common hurdles that borrowers must clear to be able to get jumbo-loan approval. These are: (1) larger income; (2) credit score; and (3) greater reserves. Do you think you can hurdle the specified criteria? Not sure? Consider consulting a highly qualified mortgage loan company such as the HomePlus Mortgage for assessment.
You may consider mortgage jumbo loan when:
You have a higher FICO score. FICO scores, the credit scores created by the Fair Isaac Corporation, which range between 300 and 850. Generally, 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.
You have enough reserves. It is highly recommended that you have enough reserves or assets to consider a jumbo loan. Experts suggest that you have an amount to cover between 6 and 12 months’ worth of mortgage payments.
Higher 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.
You need to finance a new home that is beyond the conforming loan limit. The first thing you need to do is to know the prevailing conforming loan limits in your area (talk to us here at HomePlus Mortgage if you are in Orange County or in the surrounding areas). If after the evaluation it is determined that the anticipated price range falls outside of your area’s conforming loan limit, then a jumbo loan might be the most ideal option.
Looking for a reputable company to help you for a mortgage jumbo loan, Orange County, CA? You have come to the right place.
Talk to an expert at HomePlus today at 800-810-PLUS (7587).