Jumbo Loan

To qualify for a jumbo loan in Central, AL, you will need to demonstrate good credit, a substantial down payment (often 20 percent or more down, but options are available for as little as 10.01 percent down), and high income.

• Jumbo loans require more documentation than most conforming loans. A full two years of income/employment and two months of assets will be reviewed to determine eligibility. 
• Sufficient income to qualify at more restrictive debt-to-income ratio (DTI) limits. Luxury properties are more vulnerable to changing market conditions and jumbo loans have a higher risk to lenders.
• Low DTI. Your monthly expenses considered in qualifying must be less than 43 percent of your gross monthly income. However, when the down payment is less than 20 percent, the DTI must be less than 35 percent. 
• Credit score minimums are based on several loan factors, but the minimums range from 660 to at least 720.
• 20 percent down, but options are available for as little as 10.01 percent down payment.
• Higher reserve requirements are common on jumbo loans, as this mitigates risk by supporting that you have the ability to pay should unforeseen events occur.
• Not all property types qualify, but MIG offers loan options for primary residences, vacation homes (second homes), and investment properties. 

Jumbo loans are subject to greater scrutiny than in the past. Under new mortgage laws enacted in 2014, all jumbo loans must qualify for Qualified Mortgage status, which protects lenders. 

Both fixed-rate jumbo loans and adjustable-rate loans are available.