This Article Is About Jumbo Mortgage Eligibility Requirements On High Priced Homes
Jumbo mortgage eligibility requirements and guidelines are more strict than government and/or conventional loans. Any mortgage loan balance that is higher than the conforming loan limit of $548,250 is considered a jumbo mortgage. Jumbo loans are also referred to as non-conforming loans because they do not conform to Fannie Mae and/or Freddie Mac’s conforming loan limits. Higher priced homes is considered riskier for lenders. This is because it takes longer to sell a higher priced home versus a traditional home after foreclosure. It may take months and/or years to sell a higher priced home. This holds true even during a hot housing market. Higher priced homes are custom built to the owner’s needs and tastes. For example, a car enthusiast may custom design his high priced home with a dozen garages and lift systems. The garage floors may be heated and the floor may be expensive tiles. However, not everyone is a car enthusiast and the 12 garage spaces may be a negative for most home buyers. Most people will have two to three vehicles and do not need 12 car spaces.
Jumbo Mortgage Eligibility Requirements: How Lenders View Jumbo Loans
Many homebuyers of high end homes may decide to take a pass on a home with a dozen car spaces. Regular traditional homes normally have two to three car spaces. Traditional homes normally take no longer than 45 to 60 days to have a homebuyer enter in written purchase contract. Due to the high risk lenders have to take, they will have higher standards and tougher eligibility requirements on jumbo mortgages than traditional government and conventional loans. The higher the risk the lender takes, the higher the mortgage rates and fees. Mortgage rates on jumbo loans are higher than traditional government and conventional loans. Certain areas in the United States have higher loan limits on government and conventional loans due to higher housing costs. FHA, VA, and conventional loan limits in high-cost areas are higher than traditional areas. Higher FHA, VA, and Conventional loans in high-cost areas are called high-balance jumbo FHA, VA, Conforming Loans. Gustan Cho Associates are experts in helping high end borrowers qualify for jumbo mortgages. We have dozens of jumbo loan programs for high-end homebuyers.
In this article, we will discuss and cover Jumbo Mortgage Eligibility Requirements On High Priced Homes.
Types Of Jumbo Lenders
.Not all lenders offer jumbo loans. Every jumbo lender has its own lending guidelines. Jumbo mortgages are not like government and conventional loans. Jumbo loans does not have a uniform agency lending guidelines like government and conventional loans. Gustan Cho Associates has over a dozen lending relationships with jumbo wholesale lenders. Each lender is different and has its own lending guidelines. Gustan Cho Associates is unique because we have traditional and non-QM wholesale jumbo lenders. We can help people with credit scores down to 660 FICO and up to a 50% debt to income ratio with a 10% down payment. We also have non-QM jumbo loans for self-employed homebuyers with no down payment required. It is called the 12-month bank statement loan program for self-employed borrowers. Other jumbo mortgage loan programs we have available at Gustan Cho Associates is the no-doc no income tax return jumbo mortgage loan program. Most jumbo loans cap at $5 million. However, homebuyers who need jumbo loans over $5 million dollars, we have lending partnerships with wholesale lenders that cater to super jumbo mortgage borrowers.
Prices Of Homes In A Hot Housing Market Market
It is no secret home prices are skyrocketing throughout the nation. It is easy to surpass the $548,250 conforming loan limit. Any loan balance that is over the $548,250 conforming loan limit is called jumbo mortgages. Home prices keep on increasing year after year where many homebuyers can easily surpass the $548,250 conforming loan limit. Mortgage rates on jumbo loans are higher than government and conventional loans due to lenders viewing jumbo loans as riskier loans. Jumbo mortgages can be amortized over 15 or 30 years on a fixed-rate mortgage. Although jumbo loans have higher mortgage rates than government and conventional loans, jumbo mortgage borrowers can still take advantage of rates under 4.0% during times of these historic low mortgage rates.
Jumbo Mortgage Eligibility Requirements For Borrowers With Bad Credit
In general, traditional jumbo lenders will require a 720 credit score, 25% down payment, and debt to income ratio with no greater than 41%. However, Gustan Cho Associates has a traditional jumbo mortgage loan program that is called 90% LTV Jumbo Mortgage Loan Program. Minimum credit score is 660 FICO and the maximum debt to income ratio is 50%. Only a 10% down payment is required. Mortgage rates are competitive and rates depends on the borrower’s risk factor which includes credit scores, debt to income ratio, and the loan to value. This jumbo mortgage loan program is one of the most popular loan programs at Gustan Cho Associates.
Borrowers can qualify for non-QM jumbo loans with credit scores down to a 500 FICO. Credit scores on jumbo loans depends on the borrowers credit scores, down payment, the type of property financed, and debt to income ratio. Gustan Cho Associates offers non-QM mortgages one day out of bankruptcy and foreclosure with a 30% down payment. Many folks recover sooner than others after bankruptcy and/or foreclosure. Homebuyers no longer have to wait the mandatory waiting period after bankruptcy and foreclosure and purchase a home sooner than later during the hot housing market.
Qualifying For A Jumbo Mortgage With A Mortgage Company Licensed In Multiple States Offering Dozens Of Jumbo Mortgage Loan Programs
Self-employed borrowers can qualify for jumbo loans with providing 12 months bank statements with no income tax returns required. 12-months of bank statements are averaged to derive the qualified income. Only deposits matter. Withdrawals does not matter. For more information on qualifying for the various types of jumbo loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. Gustan Cho Associates are mortgage bankers and correspondent lenders with the ability to broker non-QM and alternative mortgage loans. We have dozens of lending relationships with non-QM and alternative mortgage wholesale lenders. Gustan Cho Associates has a national reputation for being a one-stop mortgage lending shop. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other mortgage companies. 100% of our pre-approved borrowers close on their home loans at Gustan Cho Associates.
