When you finance expensive property, you need a jumbo mortgage.
A Jumbo Loan is an excellent option for those looking to buy larger homes. A Jumbo Mortgage, or Jumbo Loan, consists of a home loan whose amount exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the government-sponsored enterprises that buy mortgages from lenders.
With home values increasing, you may find yourself in need of a larger loan amount. That's where a jumbo mortgage comes in. If your required loan amount is even $1 over your area's Federal Housing Finance Agency (FHFA) conforming loan limit, a jumbo loan (or non-conforming loan) is needed.
Pros of Jumbo mortgages
As little as 10% down with no mortgage insurance
Competitive fixed and adjustable rates
15, 20, and 30-year terms
Finance a primary residence, a second home, even a vacation home
Enjoy the convenience of one loan for the entire loan amount
Refinance a jumbo loan and get up to $750,000 cash back
Cons of Jumbo mortgages
Rates can vary largely
Who should get one?
A jumbo loan may be for you if you have:
Two years of steady employment (preferably with the same employer)
A minimum credit score of 680 or higher
Monthly debt that does not exceed 40% of your monthly income
Strong assets and cash reserves