Jumbo Loans With Low Credit Scores And Bad Credit Mortgage Guidelines

This Article Is About Jumbo Loans With Low Credit Scores And Bad Credit Mortgage Guidelines Gustan Cho Associates now offers jumbo loans with low credit scores and bad credit. Jumbo loans with low credit scores and bad credit is often referred to as non-QM jumbo mortgages. Until recently, borrowers needed over 700 FICO credit scores, low debt to income ratios, stellar credit, and no bankruptcies and/or housing event in the past 7 years to qualify for jumbo mortgages.

The emergence of non-QM and alternative financing loan programs in the past two years has been a major hit. This holds true for borrowers looking to get qualified for mortgages with bad credit and low credit scores.

Right after the 2008 housing and banking meltdown, jumbo loans came to an abrupt halt. Many higher-end home buyers looking for jumbo loans with low credit scores could not get financing. Now, higher-end home buyers can qualify for Non-QM Loans With Low Credit Scores and Bad Credit.

In this blog, we will discuss qualifying for non-QM loans with low credit scores and bad credit.

What Are Jumbo Mortgages

What Are Jumbo Mortgages

Conforming Loans are conventional loans that conform to Fannie Mae and/or Freddie Mac Mortgage Guidelines with a maximum loan limit of $548.250. Any residential home loan with a higher than a $584,250 loan limit is called and referred to as non-conforming loans and/or jumbo loans. Jumbo loans are considered riskier than government and conventional loans by mortgage lenders.

It takes much longer to sell and liquidate a higher-end home than a traditional average home if borrowers foreclose. Due to this risk factor, jumbo loans had much tougher lending guidelines than government and conforming loans. Higher risk by lenders means higher mortgage risks and higher lending standards. Mortgage rates on jumbo loans are higher than conforming mortgage interest rates.

The good news is that Gustan Cho Associates Mortgage Group now offers non-QM Loans with low credit scores and bad credit.

Eligibility Requirements To Qualify For Jumbo Loans With Low Credit Scores

As mentioned in the above paragraph, jumbo loans are considered higher-risk investments by lenders. Lower credit scores by borrowers also add another layer of risk to lenders. To qualify for Non-QM Loans With Low Credit Scores and bad credit, lenders want to see skin in the game by borrowers.

Gustan Cho Associates has investors who will qualify and approve borrowers on Jumbo Loans with credit scores down to 500 FICO. However, to qualify for Jumbo Mortgage with 500 credit scores, a 25% down payment is required. The larger the down payment, the more skin in the game borrowers has. The more the home buyer puts down on a home purchase, the less of a likelihood the homeowner will want to give the home up and let it go to foreclosure.

Other Non-QM Jumbo Mortgage Programs

Non-QM Jumbo Mortgage Programs

Gustan Cho Associates has traditional and non-QM jumbo loan programs with a 10% down payment. To qualify for a 10% down payment traditional jumbo loans, a 660 FICO credit score is required. The higher the borrowers’ credit scores, the lower the risk level lenders have. This is why higher credit score borrowers can qualify for jumbo loans with a 10% down payment. Borrowers can definitely qualify for non-QM jumbo loans with low credit scores and bad credit with credit scores down to 500 FICO. The lower the credit score, the higher the down payment is required. Borrowers with 660 credit scores can qualify for 10% down payment traditional jumbo loans with no private mortgage insurance at Gustan Cho Associates. Borrowers who need to qualify for non-QM jumbo loans with bad credit, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected]

Leave a comment