The Mortgage Network: Brian Quigley

Jumbo & Super Jumbo Loans

Jumbo and Super Jumbo Lending up to $3,000,000

Luxury home purchased with a jumbo loan

The requirements for Jumbo Loans have changed in 2020 making it easier to get approved for home loans up to $3,000,000.

Conventional Loan Limits

In 2020, the loan amount limits for conforming loans increased to $510,400. That means any loan amount higher than $510,400 is considered a JUMBO LOAN. This amount can vary depending on where the property is located. Using this interactive map for loan limits you can easily find the conventional loan limits for your county.

Why Consider a Jumbo Loan?

Usually serviced from the lender using one of their portfolio programs, this is a loan that is usually a flagship product, so they come in with very good pricing. A reason for this, is that the portfolio lender is holding the mortgage, and not having to package, and sell it off to the secondary market. If they wanted to charge 1% (not likely) they could, it is their money.

But how does this help me?

people with questions about jumbo loans

Good question. If you are finding yourself attracted to a bigger home and price in Colorado, and are not comfortable with the hefty down payment, Jumbo Loans are available up to 90% of the purchase price with a high enough credit score. Loan options available for all kinds of jumbo loans up to $3,000,000 are as follows from a basic selection of the following.

  1. 30 year fix --which will carry a higher rate and highest payment
  2. 5/1, 7/1, and 10/1 ARM - carries a lower rate fixed for 5, 7, or 10 years.
  3. Interest Only Feature - Will usually be interest only tied to a 30 year fix - lowest
    payment option.
  4. 40 year fix - Yes, this does exist

Jumbo Loan Case Scenario using 90% LTV

John and Julie find a home for $1,000,000 they want to purchase in the LoHi neighborhood of Denver. They want to put as little as they can down and are only comfortable putting 10% down. They speak to a local mortgage broker, and are given a quote on a 30 year fix of 5.75% Interest Only.

  • Purchase Price - $1,000,000
  • 10% down - $100,000
  • Financing 90% LTV at $900,000
  • 4.75% 30 year fix payment  - $4,694.83

Updated Jumbo Loan Qualifications for 2020

Jumbo loans can help you qualify for a luxury property like this couple in Denver, Colorado.

Besides being able to finance a majority of the purchase price, the jumbo loan has other features which should help more buyers get qualified for their next luxury home purchase. They are as follows.

Flexibility in getting your Income Cleared

If you are self employed and have been turned down from the bank, please do not get discouraged. Seek out a local Mortgage Broker and get better loan options. They are out there. We can qualify you based on your business bank statements, a P&L letter, etc. We don't put heavy weight on your tax returns if you cannot show enough income that way. Again, there is always a better way.

Financing up to 90% LTV with no Mortgage Insurance

That means no bothersome payment paid every month which is basically throwing your money away.

Rates reduced in all FICO x LTV (Loan to Value) combinations

Rates have been reduced making jumbo loans less expensive over the life of the loan. These rates have been reduced for all of the FICO score and LTV ratio combinations.

Debt To Income Ratios up to 50%

Yes, 50%. If you are speaking with a mortgage broker and he is saying 43% is their max, I am here to tell you there is a better way. Keep researching your options. Non QM Lenders mostly ALL go up to 50% DTI, or Debt to Income Ratio, which will qualify more home buyers. This is their niche.

Credit event seasoning reduced from 60 months to 48 months

Negative credit report items such as foreclosure will not have an impact if they occurred over 48 months prior. This has been reduced from 60 months (5 years).

Non-Occupying Co-Borrowers

Yes, if you cannot qualify on your own, you can have a non-occupying co-borrower on the loan to help you qualify. Mom, Dad, etc, can go on the loan with you, and not have to live there.

Jumbo Loan FAQ's

What is the Jumbo Loan minimum in 2020?

Jumbo loans have a minimum starting at $250,000.

What is the jumbo loan limit in 2020?

Jumbo loans have a maximum of up to $3 million in 2020.

What does 90% LTV mean?

LTV (loan to value ratio) is one of the main numbers a lender looks at when deciding to approve you for a home purchase or refinance. Your LTV compares the size of your mortgage loan to the value of the home. A 90% LTV means the loan makes up 90% of the total price.  For example: If your home is worth $200,000, and you have a mortgage for $180,000, your loan to value ratio is 90%.  (because the loan makes up 90% of the total price).

How much are the closing costs on a Jumbo Loan?

You’ll have to budget between three and six percent of the total home value for closing costs with any type of jumbo mortgage loan.  Sometimes, however, jumbo loans have much higher closing costs than conventional mortgages. For example, on a $500,000 mortgage, you can expect to pay between $10,000 – $25,000 in cash at the closing table.

Can you get a jumbo loan with 10% down payment?

Jumbo loans typically have much higher down payment requirements compared to conventional loans. It’s common to see lenders require 20% down on jumbo loans for single-family units.  With a jumbo FHA loan, only a 3.5% down payment is required in an effort to make home ownership more accessible to more people, (but you can’t get outside assistance with your down payment).

In Closing

Stay Informed with Up to Date Information

Do your research. There are many staffed ghost writers out there writing babble about jumbo loans with out of date information. Rates, terms, and offers change so it is important to find up do date information.

Find a Qualified Local Mortgage Broker

If you are interested in what you qualify for, or have any questions regarding jumbo loan financing, seek out a qualified Mortgage Broker as you shop around. Not only someone who can offer a superior product but someone who is familiar with the industry and housing market in Colorado.

Please understand these companies and lenders are people just like you. They want your business, and are not tied to the QM Standards, which can be extremely rigid. We have seen approvals with limited reserves, lower credit scores, etc. If the loan makes sense, we can usually get it underwritten. Do your research!

Brian Quigley
Hello, my name is Brian Quigley and I have been a mortgage broker in Denver, CO since 2003. I have been fortunate enough to choose this very rewarding mortgage broker career and help thousands of borrowers over the years. Customer satisfaction is important to me most, and getting my clients to the closing table smoothly. I am proficient in all types of mortgage financing including FHA/VA, Conventional, USDA, Jumbo, Portfolio, 1031 Exchanges, Reverse Mortgages, Construction loans, and FHA 203K loans.

Contact Brian to Discuss Your Loan Options Today

The Mortgage Network : Brian Quigley

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