Jumbo home mortgage loans are a specific type of loan targeted at higher-end properties such as luxury homes and high-value real estate markets. These have a different kind of underwriting requirements and go through unique tax implications.
Mortgage Capital is one of your best choices when it comes to availing jumbo home mortgage loans.
Whether you are a first-time homebuyer or want to get the upgrade you want by purchasing or building your own dream home, Mortgage Capital’s variety of jumbo home mortgage loans will help you through the entire process.
We are all about giving you the best experience there is — a fast jumbo home mortgage application.
Jumbo Home Mortgage Loan Requirements
The global recession of 2008 changed the financial landscape as it made mortgage applications and protocols more stringent. This is especially true for high-scale mortgage plans like jumbo home loans.
To be approved, you need to have a stellar credit score of at least 700. You also need to have a favorable debt-to-income (DTI) ratio no higher than 43%. Also, note that the DTI is directly tied to the property’s price and position of its lien.
Jumbos are nonconforming mortgages. But even if this is the case, they are still under the Consumer Financial Protection Bureau guidelines and are considered qualified mortgage.
You should have strong buying power and must have direct access to cash to cover payments in the fastest way possible. Specific income levels are also required depending on the size of the total loan. Furthermore, borrowers also need a 30-day pay stub accompanied with a W-2 tax form from the last two years.
Self-employed borrowers have more requirements. First is tax returns from the last two years and a minimum of 60 days of current bank statements.
It will also help if you provide proof of sales documents and business operation permits to further solidify your capability to repay bigger loan amounts in the stipulated time frames.
Borrowers also need to have provable liquid assets and a cash reserve of at least 6 to 12 months of monthly mortgage payments. Proper full documentation of other existing loans should also be done, alongside non-liquid assets such as real estate.
What are Jumbo Home Mortgage Loans?
Jumble home mortgage loans are a type of home loan that covers larger amounts compared to conventional mortgages. These are mortgages that exceed the property location’s conforming loan limits set by the Federal Housing and Finance Agency.
These mortgages go beyond the usual loan size, hence the word — jumbo. Buying a mansion, building a vacation home or rest house, or maybe getting a regular home in a posh neighborhood require larger sums of money which can be obtained from a jumbo loan.
Most jumbo home mortgage lenders offer loans of up to $3 million or more. You can easily apply for larger amounts with Mortgage Capital if you have more cash on hand, non-liquid assets, and a stellar credit rating and debt-to-income ratio.
What are the current rates for a Jumbo Home Mortgage Loan?
The current rate for a jumbo home mortgage loan is 7.09%, based on the 30-year national average. This has increased by 0.02% from the 7.07% rate last week. Meanwhile, the 30-year national average for jumbo refinancing is 7.15%, which has increased from 7.09% last week.
Mortgage Capital offers competitive rates for those looking to get their first jumbo home mortgage loan. We offer various options to choose from so you can stick to your budget and sync with your needs.
We will help you choose the ideal option as we assess your needs and financial background. This way, we can ensure a smooth jumbo home mortgage loan process without the hassle clients usually get from other mortgage lenders.
Which mortgage lenders or mortgage brokers offer Jumbo Home Mortgage Loans?
Mortgage Capital is one of the best, if not the best mortgage lenders, that offers the best rates for jumbo home mortgage loans.
We help you finance the home of your dreams and experience the lifestyle you want to achieve. We are experts when it comes to providing finances to qualified borrowers who need more funds to buy high-value properties.
Aside from serving as expert financers, Mortgage Capital will also help assess your situation so you can get the jumble mortgage plan you deserve.
What act created Jumbo Mortgage Loans?
The Housing and Economic Recovery Act of 2008 was signed by President George W. Bush on Feb. 13, 2008. This was in response to the global recession which led to the creation of jumbo mortgage loans by increasing their conforming limit inside the country.
This law raised the limit of median home value by 125% to $729,750. Although the limit was scheduled to expire in Dec. 2008, it managed to get extended up until 2010.
This then became widespread among private mortgage lenders because more people were diving into luxury real estate property thanks to the economic comeback after the global recession.
Jumbo Home Mortgage Loan Limits for 2024
Jumbo home mortgage loan limits vary from lender to lender. But Mortgage Capital offers the most competitive rates and flexible limits there is depending on your financial portfolio and submitted documents.
The Federal Housing Finance Agency (FHFA) has set the confirming limit for mortgage loans of one-unit properties at $766,550. This has increased by $40,250 from the previous $726,200 confirming the limit set in 2023.
This means that going beyond the $766,550 value requires you to avail a jumbo home mortgage loan, instead of the regular kind of mortgage loans. Also, note that you can avail of higher loan limits if the property you are planning to build or buy is a 2 to 4-unit home.
The more units your house is, the higher the chances that you can get a higher mortgage loan from a lender. However, be sure that you only work with the best lenders out there. Choose one that has been in the industry for years and has served multiple clients from different industries.
Mortgage Capital got you covered with your jumbo home mortgage loans.