American Mortgage Solutions
jumbo loans
in Indiana, Colorado, Kentucky, Tennessee, Florida or Texas.
All About Jumbo Loans
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Brady Webb
Financial tools are readily available for your personal use, regardless of need. Loans exist to help you fund your education or finance your dream home, and most people in need of bigger investments opt for jumbo loans.
These are essentially lending options that allow you to take out mortgages for higher-priced properties, offered by countless mortgage lenders. They exceed the loan sizes provided by Freddie Mac and Fannie Mae, which are government-sponsored enterprises.
Unfortunately, most people remain in the dark about jumbo loans. The choice of investing in one depends on where you wish to live, and how high you’re willing to pay for your home. For areas where average prices fall beyond the national median, jumbo loans will be your best bet as a homeowner.
Thankfully, jumbo loans are designed to be extremely flexible, especially in terms of the properties you wish to purchase. To learn more about jumbo loans, we’ve gathered this quick and easy guide for you:
The Loan Requirements
Unlike other traditional loans, jumbo loans require borrowers to prepare additional requirements. Take note of the following items:
The Jumbo Caveat: 2021 Limitations
- Your credit score: A successful loan application always relies on your credit score, but jumbo loans require a higher number. Make sure your credit score is at least 700.
- The DTI ratio: If you’re looking to pursue a jumbo loan, make sure that your DTI is at its lowest. You’ll want it to fall under 43 percent for a better chance.
- Down payment: The minimum amount will depend on the lender you choose to work with, but can be higher than the traditional 20 percent.
As with all loans, jumbo loans also operate under certain limitations. These limits are set by the Federal Housing Finance Agency, which then oversees the government-sponsored enterprises of Freddie Mac and Fannie Mae.
Such limitations are important, as they help lenders increase the accessibility of loans to various borrowers. They empower lending institutions to sell loans to government-sponsored enterprises, thereby decreasing the risks should the borrower fail to repay. Given the huge amounts involved, the risks are always high for lenders.
These limitations vary per market and state. New changes have been introduced, and as of 2021, homeowners can now borrow up to $548,250 in most parts of the country. However, limits can go as high as $822,375, particularly in Hawaii and Alaska. These numbers only apply to single-family units, however, as multifamily unit limits operate under specific conditions.
Contact a Mortgage Specialist in Florida
Jumbo loans are essentially mortgage loans with higher amount limits, allowing individuals to loan beyond the conventional amounts. They’re used to purchase a variety of properties but will come with requirements based on the lender’s preferences and protocol. Down payments are also usually higher, and will depend on both the state and market.
The good news is that countless homeowners are now given the opportunity to loan accordingly, bringing them closer to their dream homes. If you’re planning to invest in a rather pricier home soon, jumbo loans are worth looking into. Remember to keep this guide in mind as you plan and strategize!
For the best mortgage brokers in Louisville, Loan Solutions Now has you covered. We have been financing homebuyer’s dream homes for years, and we offer you the same level of expertise and dedication. Let’s turn your plans into reality—reach out to us today.
Need help with your Jumbo loan in Florida?, please call (239) 766-8344. We also have offices in Louisville, Kentucky. If you would like to reach us there, you can give us a call at (502) 327-9770. We work with customers in Indiana, Tennessee and Colorado as well.
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Copyright © 2023 | American Mortgage Solutions | NMLS: 1364/MB73346
Licensed in: FL, KY, TN, IN, CO, TX
FL-MBR1574, TN-135166
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners. For information directly from HUD/FHA, visit https://www.hud.gov/guidance For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS