Loan Limits On Mortgages On Higher End Home Purchases
This BLOG On Loan Limits On Mortgages On Higher End Home Purchases Was PUBLISHED On April 15th, 2019
Loan Limits often becomes an issue for higher-end home buyers. Government and conventional loans have maximum loan limits.
- Home prices have hit the highest level recently
- The Federal Housing Finance Agency (FHFA) has increased conventional loan limits for three years in a row
- FHFA increased conforming loan limits to $484,350 for 2019 due to rising home prices
- This is the third year in a row that FHFA is increasing conventional loan limits
- The Department of Housing and Urban Development (HUD), the parent of FHA, followed FHFA’s lead and also increased FHA Loan Limits three years in a row
- FHA Loan Limits for 2019 is now capped at $314,827
- This has been three years in a row for HUD increasing loan limits for three years in a row due to rising housing prices
We will discuss alternative financing for home buyers needing to qualify higher-end homes.
Government and conventional loans have maximum loan limit caps.
- FHA Loan Limit caps are at $314,827 unless the property is located in a high-cost area
- Conventional and VA Loans limit loan sizes to $484,350 unless the home is located in a high-cost area
- Any loan size higher than $484,350 are called non-conforming loans or jumbo mortgages
- Traditional Jumbo Mortgages have very tough lending requirements because lenders view jumbo loans as higher-risk mortgages
- Mortgage rates on Jumbo Loans are higher than government and/or conventional loans due to layers of risk with jumbos
- Most traditional jumbo lenders will require 20% down payment and 700 FICO scores for their borrowers
- NON-QM Jumbo Loans cap loan sizes up to $3 million
However, Gustan Cho Associates at Loan Cabin Inc. now offers non-qm jumbo mortgages with lower credit scores, higher debt to income ratios, and lower down payment.
What Are NON-QM Jumbo Loans
There are various types of non-qm loans. NON-QM Mortgages are also referred to as portfolio loans.
- Many people get non–qm mortgages confused with hard money loans
- NON-QM Loans are not for home buyers with bad credit
- Yes, there are many features on non–qm mortgages such as no waiting period after bankruptcy, foreclosure, short sale, deed in lieu of foreclosure
- But there are many non–qm borrowers with very high credit scores, lower debt to income ratio, and large down payments but need a higher loan size than government or conventional loans
- Gustan Cho Associates also offers bank statement non–qm Jumbo mortgages for self-employed borrowers
- We also offer a 95% LTV NON-QM Jumbo Loans
There are so many different loan programs for higher-end home buyers that it is impossible to list it all in this article. Please contact us at 262-716-8151 for more information or text us for faster response. Or email us at firstname.lastname@example.org.
Eligibility Requirements On NON-QM Jumbo Mortgages
Borrowers with higher credit scores and larger down payments will get better mortgage rates. 10% to 20% down payment required. Down payment requirements depends on borrower’s credit scores. Mortgage rates are determined by borrower’s credit scores and down payment. Borrowers with credit scores down to 500 FICO can qualify for NON-QM Jumbo Mortgages with 25% down payment. 680 FICO or higher only requires 10% down payment. Borrowers with 720 FICO or higher can qualify for 5% down payment non-qm Jumbo Loans. There is no private mortgage insurance required. Loan Limits up to $3 million. Higher than $3 million loan amounts will be looked at on a case by case basis. For more information, please contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. Or email us at email@example.com. The Gustan Cho Team is available 7 days a week, evenings, weekends, and holidays.