Types of Jumbo Mortgage Loan Programs | Prime vs Nonprime

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will discuss and cover the types of jumbo mortgage loan programs for homebuyers available at Gustan Cho Associates. Gustan Cho Associates has several types of jumbo mortgage loan programs available at GCA Mortgage. If you have been paying attention to the news, you know home values are up across the nation. There has been a recent surge in the appreciation of homes due to a lack of inventory and high demand. The COVID-19 coronavirus pandemic has opened up the eyes of many individuals who live in large cities. With these individuals now being allowed to work from home, they no longer need to be in a jampacked major city.

The Booming Housing Market And Skyrocketing Home Prices

Many individuals are trying to relocate out of cities and into a suburb. There are also many individuals who would like to move now that they have more freedom with work. Many individuals want to be closer to their families. It can be quite difficult to buy a house in this market. In many areas of the country, bidding wars are still happening.

Buying A High End Home With A Jumbo Home Loan

In this blog, we will detail some jumbo mortgage options that you may need to use in order to buy the home you’re looking for. Home prices have accelerated, and jumbo financing has become more popular over the past few years. We now have a new low-down-payment jumbo mortgage available. In this blog we will detail what jumbo financing means, discuss the new low down payment jumbo mortgage available, and discuss the steps to apply for one of the many types of jumbo mortgage loan programs available at Gustan Cho Associates.

Types of Jumbo Mortgage Loans Explained

The term jumbo or non-conforming mortgage simply means any loan amount that is one dollar or greater above the county conforming loan limit. The county conforming loan limit is put in place each year by FHFA. They compile nationwide information based on the average sale price and create was called the home price index (HPI). Then the following year conforming loan limit is based on this information. Currently, for 2020, most counties have a conforming loan limit of $647,200. There are some counties spread out across the country that have higher loan limits because the median home price is well above the national average.

Buying Homes In High-Cost Areas with High Balance or Jumbo Loans

Many counties like Los Angeles, San Francisco, Denver, and other higher-cost areas of the country have a conforming loan limit as high as $970,800. So you will not need to utilize a jumbo mortgage unless you are at least one dollar above the conforming loan limit in those areas. If you have questions on the specific loan limit in the area you’re looking to purchase a home, please call Mike Gracz at 630-659-7644 or we can be reached via email at [email protected]

Lending Guidelines And Requirements Between The Various Types Of Jumbo Mortgage

Now that we understand the definition of a jumbo mortgage, it is important to understand that jumbo financing can be strict and difficult to qualify for. Many jumbo mortgage programs require a surplus of liquid reserves after closing costs and down payment. Liquid reserves are funds left in your account after the down payment and closing costs. Jumbo financing has much tougher credit score requirements compared to conventional and FHA mortgage loans. Many programs require 12 and even up to 24 months of reserves to qualify. One month of reserves is equal to your total monthly mortgage payment. 

Types of Jumbo Loan Programs Available At Gustan Cho Associates

Types Of Jumbo Loan Programs

There are many types of jumbo mortgage options to choose from. Gustan Cho Associates is a lender with a national reputation of having the most jumbo mortgage options due to having lending relationships with over 170 wholesale mortgage lenders and being licensed in 48 states. There are two types of jumbo loan programs.  Traditional full doc jumbo mortgages and non-prime jumbo loans with no income tax returns requied. In the following paragraphs, we will cover the different jumbo options available at Gustan Cho Associates.

VA Jumbo Loans in High-Cost Counties

VA jumbo loans:

  • Many veterans have asked if jumbo financing is available to them.
  • The answer is yes. After the Blue Water Navy Vietnam Veterans Act of 2019 was signed by President Trump, there are no longer loan limits for VA mortgage lending.
  • A veteran used to need a 25% down payment for the difference between the purchase price and the county limit of their home, but that is no longer the case. We offer VA Jumbo mortgages well above $1 million for our nation’s veterans.
  • In fact, there is no limit. A veteran must still qualify based on all VA mortgage guidelines.
  • For more information, please reach out to our VA mortgage expert, Mike Gracz (630-659-7644).

NON-QM Jumbo Mortgages

Gustan Cho Associates has a national reputation due to the various non-QM loan programs it offers. We offer a full lineup of NON-QM mortgage products. Please read our blog on NON-QM mortgage products for more information. But even if you are a self-employed individual, we do not want you to be discouraged from utilizing a jumbo mortgage. We are experts when it comes to alternative mortgage financing and is here to answer any questions you may have surrounding the loan programs.

Low Down Payment Jumbo Mortgages

This is one of the main topics we want to cover. As the nation’s economy recovers, we have seen some of our most successful mortgage products come back to the market. During the COVID-19 coronavirus outbreak, we lost our ability to use a 10% down jumbo mortgage loan. However, this program is now available again. This is a program that will allow many potential homebuyers to enter the jumbo mortgage market with a very small down payment. Whether we utilize a 90% LTV jumbo loan, a combined first and second mortgage, or low down payment options for jumbo mortgage lending, our team is here for you. As each one of these products has slightly different qualifications, it is best to call the Gustan Cho Associates for specifics. We even have a 3.5% down jumbo mortgage program available in most states.

Qualify Today On A Non-QM Or Traditional Jumbo Loan At Gustan Cho Associates

Applying for a jumbo mortgage loan at Gustan Cho Associates is very simple. In fact, it is no different than applying for a conforming loan. First, she will reach out directly to Mike Gracz on 630-659-7644. You may call or text this number. Mike will set up a one-on-one consultation to go over your jumbo mortgage qualifications. Assuming your initial qualifications check out, you will then fill out an online mortgage application. This online mortgage application will give your loan officer permission to verify your credit report and continue to move forward with your pre-approval. Based on your credit profile, qualifying income, and available assets, your loan officer will issue you a preapproval letter accordingly.

Starting The Qualification and Loan Application Process To Get Pre-Approved Today

Jumbo mortgage lending can be difficult to understand. And each lender may have different jumbo programs at their disposal. The Gustan Cho Associates are able to offer some highly competitive jumbo mortgage financing. Please reach out to our team directly with any questions surrounding jumbo mortgage qualifications. We can be reached seven days a week by phone, email, or by filling out our online form.