When you have your eye on a fabulous home with a sales price that exceeds the limits of a traditional Conventional mortgage, our team at Supreme Lending can help you apply for a jumbo loan. In all counties in Texas, any home loan higher than $ $548,250 requires a Jumbo loan program.
Jumbo loans have stricter qualification requirements than conventional loans. Issuing a Jumbo loan is riskier to a mortgage company than a Conventional loan because the amounts are higher and they are not federally guaranteed. The qualifying credit score for a Jumbo loan is usually 680 or above, while a Conventional loan generally requires a score of 620 or above. Additionally, the interest rate is usually higher for Jumbo loans, and a down payment of 10%-20% is often required.
Jumbo loans typically require a certain amount of cash in reserve. This is often at least equal to a year’s worth of mortgage payments.
As you can see, these requirements can feel stringent to some homebuyers interested in purchasing a luxury property. If you don’t qualify for a Jumbo loan — or think you won’t qualify —you may be able to take out two smaller mortgages instead of one larger one, thereby avoiding the requirements that come with a Jumbo loan.
Talk to our mortgage professionals in Allen today about our Jumbo loans.