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Jumbo Loan
The limit in most U.S. counties is $647,200 for a single-family home, but many high-cost areas have a conforming loan limit of up to $970,800.
While interest rates are usually a bit higher for jumbo loans, they have actually been very competitive over the last two years, sometimes even lower than conforming loan rates.
Jumbo Loan Qualifications
To qualify for a jumbo loan, 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.
High Balance and Super Conforming Loans
Properties that are located in counties with loan limits that exceed the base loan limit of $647,200 may be eligible for a High Balance/Super-Conforming loan. If this is true, the loan could be $647,201 up to $970,800 (the highest conforming loan limit), subject to the county's actual limit, per the Federal Housing Finance Agency.
It is possible to avoid getting a jumbo mortgage by getting a first mortgage and second mortgage at the same time. If you choose to go this route, just make sure your combined rate is lower than the jumbo loan, and do not forget to consider closing costs for two loans.
Contact Us Today
Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.
MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:- Rates are subject to change at any time.
- Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
- Payments will vary based on program selection, current rates, property location, etc.
- Not all programs are available in all states.
- Some loan programs may not be available to first time home buyers.
- Terms and conditions apply, which may include restrictions or limits per loan program.
- Information is generally based on primary residence occupancy with no cash out when refinancing.
- Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.
An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020
See the NMLS consumer access page
