Looking to buy a high-end home? At Top Flite Financial, jumbo loan expert Sheryl specializes in helping buyers navigate the complex process of borrowing a large amount for a real estate transaction.
Jumbo loans refer to home loans that exceed the normal loan limits. For those with lower debt-to-income ratios and a higher credit score, a jumbo loan may be right for you.
To qualify for a jumbo loan, you must have:
- Very good credit (740 or above)
- Financial strength. (Debt-to-income ratio under 45%)
- Property appraisal must support the purchase price for the home and the mortgage
- Cash reserves to cover one year of mortgage payments
So, when should you use a jumbo loan? In most cases, a jumbo loan is used when more than $4,117,000.00 is needed. Sometimes, depending on the cost of living in an area, the loan limit rises.
If you’re looking to buy a larger piece of property, and you want to avoid dealing with more than one piggyback loan, consider a jumbo loan.
Jumbo loans have no private mortgage insurance requirements, and borrowers are sure to recognize the tax benefits gained by deducting interest payments.
This loan allows you to borrow the full amount of money from one loan instead of having to break it up into two different loans, and allows you to avoid tapping into your savings to purchase a high value property.
Borrowers may choose from a variety of loan options when dealing with jumbo loans.