Answers To Some Important Questions About Jumbo Loan San Diego

Mortgage Broker Lender San Diego
January 29, 2019
Mortgage Brokers San Diego
March 13, 2019

Answers To Some Important Questions About Jumbo Loan San Diego

With quite a number of loan options available in the market today, chances are that you are going to get overwhelmed with information about them, which could affect your decision. That is why it is imperative that you exercise due diligence so that the product you choose is the best available for your need.

One of the popular loan types available in the market today is jumbo loan, San Diego. Apparently, this is also one of the items that we get a lot of questions about. So, to help our readers and prospective clients understand jumbo loan even more, we have provided answers to some of the most common questions sent to us from prospects.

What makes a loan jumbo? A home loan can be categorized as jumbo when it goes above the standards used for other loans. As of this writing, the loans that ‘conform’ usually have a limit of about USD 424K. Beyond that amount is considered jumbo loan.

What are the different kinds of jumbo loans available? Just like the conforming loans, there are several types of jumbo loans, but basically, they fall either in Adjustable Rate mortgages or in Fixed Rate category. But there is also called Interest Rate only loan, where you will only pay the interest for a certain amount of time.

How to qualify for a jumbo mortgage? It is worth pointing out that jumbo lenders typically have stricter underwriting guidelines. That is understandable as they are not backed by Fannie or Freddie, so they are considered riskier loans. But here are the items that can help increase your chances of approval:

  • Larger income
  • Higher credit scores (FICO score is around 740)
  • Greater reserves or assets to cover 6 to 12 months payments
  • Healthy debt-to-income ratio
  • A down payment of 20 to 30 percent

What are the benefits of jumbo loans? They allow you to go outside of Fannie and Freddie limitations. With this, you can get a more competitive interest rate. You can finance your chosen home without being restricted by the amount limit on conforming mortgages.

It is also important to note that jumbo loans are a convenient way to finance property. You might want to choose more of financing the cost of your home than tying up cash, so the jumbo loan might be the more ideal choice.

Do you have more questions about jumbo loan San Diego? Don’t hesitate to contact an expert at HomePlus Mortgage a 800-958-7587 (PLUS).