A loan is considered “Jumbo” if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac which is currently $424,100 in most states. This loan is like a conventional loan in that they are not insured by the government or guaranteed by the Veterans Administration.
Because of their size, jumbo loan standards have more stringent qualification considerations such as:
- Two appraisals are required instead of one in most cases.
- Higher down payment required by most lenders often between 15-30%.
- You will generally need a credit score of 680 or higher, several months of reserve funds, and a debt-to-income ratio of below 43%.
If you meet the above criteria and think a jumbo loan might be the best fit for you, call one of our loan professionals now to get all the details. 800-988-7793