The requirements for Jumbo Loans have changed in 2020 making it easier to get approved for home loans up to $3,000,000.
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.
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.
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.
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.
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.
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.
That means no bothersome payment paid every month which is basically throwing your money away.
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.
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.
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).
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 loans have a minimum starting at $250,000.
Jumbo loans have a maximum of up to $3 million in 2020.
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).
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.
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).
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.
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!