Jumbo Mortgage Financing
The non-conforming loan, Jumbo Mortgage, is a loan that is used to finance a mortgage that is higher than a conforming loan limits. These limits have been set to restrict the maximum value of any individual mortgage purchased from a lender by two government-sponsored enterprises named, Fannie Mae and Freddie Mac. Out of all the loans, most lenders state that the Jumbo Mortgage loan is riskier. The reason is because it does not involve dividing or spreading out a large sum of money between several transactions, it requires taking a larger amount of money into one transaction. Therefore, this loan is suitable for someone who has a lower debt-to-income ratio, a higher credit score and a larger down payment. Due to outside marketing, it is possible that the supply and demand can change, which could impact the Jumbo Mortgage financing.
Below is what is needed to qualify for a Jumbo Mortgage:
- Due to the sizeable loan, please make sure you are able to afford the payments over a long period of time. With that said, be explicit on what you do for a living, the health of industry that you work for and what are your chance on continuing working in that industry.
- Your assets must be documented and relate to the income you have stated on your loan application
- Credit Scores
- Having a high credit score is ideal for this loan and this must also include proof of responsible borrowing history. Please document any sizeable debts that you have managed positively or fully paid off or any public records and issues with the IRS.
- Present all appraisals on your property that was required to finance it.
When applying for a Jumbo Mortgage loan, make sure to have all your paperwork organized with prepared explanations for potential questions that may be asked by the underwriters regarding your capability to pay for mortgages.