Jumbo loans have loan amounts that are above the Conforming loan limit that is set by Fannie Mae and Freddie Mac — currently $424,100 for a single-family home in most areas. One of the exceptions is designated areas that are considered High-cost markets where the limit is $636,150. Most high cost areas are in larger cities where the population is more dense and the demand for housing is higher.
Jumbo mortgages are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms, including fixed-rate and adjustable-rate loans. A Jumbo loan will typically have a higher interest rate, stricter underwriting rules and require a larger down payment than a standard mortgage.
Some other things to consider with Jumbo loans are as follows:
- Typically requires 680 or better score
- Requires 10% or more for your down payment
- Debt to income ratio of 45% or less
- May require more money in reserves
- Sometimes there are interest only options
If your score is not at an acceptable level, The Cain Mortgage Team can help you improve your scores so that you will have the ability to obtain the best rate possible. As a Mortgage Broker, we have experience and the systems in place to improve your scores rapidly. So, don’t let your score prevent you from reaching out to us, we will be with you every step of the way!
If you are in the market for a Jumbo loans, please reach out to us at 803 261 9267. We are ready to find the best possible Jumbo option for you!