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Are you looking to purchase a home, but worry the property’s price may be too high for a traditional conventional mortgage? Jumbo loans are non-conforming mortgages designed to finance higher priced or luxury properties and homes in competitive housing markets. This allows you to still obtain the home financing you need!
If a property you’re interested in is listed above the conforming loan limit set by the Federal Housing Finance Agency (FHFA), your mortgage lender will most likely look at jumbo loan options.
However, just because the loan cap is higher it doesn’t mean you’ll have to settle for a higher interest rate. Your loan’s interest rate will always ultimately depend on the loan program you choose, the market conditions, and your financial situation.
Applying for a jumbo loan is very similar to other mortgages, with a few exceptions. Because underwriting requirements vary by program, jumbo mortgages may have different requirements than conforming loans when it comes to your credit score and debt-to-income ratio. Along with your lender reviewing your assets, income, and credit, you may have to provide provable liquid assets and cash reserves equal to six months of mortgage payments.
Some jumbo loan programs are location specific, so it’s important to talk to your Loan Originator about what your best options are.
At Homestead Funding, our program variety ensures we’re meeting borrowers where they are for their financing needs. Our jumbo options include:
Ready to learn more about what home financing options work with your goals? Contact us today!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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