MINIMUM CREDIT
SCORE
700
KEY
ADVANTAGES
CONVENTIONAL PORTFOLIO LOANS WITH FIXED AND ADJUSTABLE TERMS THAT EXCEED NORMAL CONFORMING LOAN LIMITS
What are the benefits of JUMBO loan?
The main benefit for borrowers is that a jumbo mortgage allows you to borrow more than the limits imposed by Fannie Mae and Freddie Mac. For instance, if you want to borrow $1 million against a $1.5 million home, a jumbo loan makes it possible. Some borrowers prefer to finance more of the home’s cost rather than tying up cash, making the jumbo mortgage a useful financial tool and part of an overall investment strategy. You can still get a competitive interest rate and finance the home of your choice without being restricted by the dollar limit on conforming mortgages.
What are the JUMBO loan requirements ?
Just like a conforming loan, jumbo loans have a similar application and evaluation process. Mortgage lenders will consider your credit score, down payment amount, current debt, debt-to-income ratio, employment history, money left over after closing, and more.
Jumbo loans require borrowers to have an above-average credit score. This credit score gives borrowers access to the best loan options available. Remember, with a higher credit score, you will be offered better rates and terms. Money left over after closing, also known as reserves or post-closing liquidity, is closely examined by your mortgage lender.
If you are applying for a jumbo loan, lenders typically like to see 12 months of reserves after closing, with half in liquid assets (in a checking or savings account) and half calculated from retirement assets. Lenders can make exceptions if you have a low debt-to-income ratio and a high down payment.
Disclaimer: All loan programs, rates, terms, and conditions are subject to change without notice. Not all borrowers will qualify. This is not a commitment to lend. Additional terms, conditions, and restrictions may apply.