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Are you looking for a mansion, villa, or high-priced property? Typical mortgage loans will not be sufficient to finance such properties. You need a fixed Jumbo loan for the high-priced property.

What Is A Jumbo Loan?

You require a considerable loan amount when you look for expensive mansions or even a home in a high-priced region. Rather than a regular mortgage, a fixed jumbo loan program finances larger than average loan amounts. It is mainly used for private properties, vacation homes, and investment properties.

How A Particular Loan Amount Termed A Jumbo Loan?

A jumbo loan program exceeds the lending limit set by Fannie Mae and Freddie Mac, two government-sponsored enterprises. They determine the limits that decide a particular loan amount under a Jumbo loan program. However, the maximum capital limit varies from lender to the property’s geographic location.
A 30-year fixed jumbo loan is a home loan with a fixed down payment for 30 years. This requires a lot of solid financial documentation to support the monthly down payment. The guidelines for 30-year fixed Jumbo loans are much stricter than the conventional mortgage guidelines.

Advantages Of The Fixed Jumbo Loan Program

Following are the advantages of getting a fixed jumbo loan program:

  • Fixed Interest rate
  • No limit on loan amount
  • Down payment is under 20%
  • Opportunity to own luxury home and huge property
  • Finance investment properties
  • Also available for home renovation and maintenance

Eligibility

Since a 30-year fixed Jumbo loan comes under a non-conforming loan as it exceeds Fannie Mae’s and Freddie Mac’s limits. Therefore, the Jumbo loan borrowers do not need to meet the set standards to qualify for the Loan program. Lenders charge their guidelines which the borrowers must follow for loan approval. Some of the basic requirements for a fixed jumbo loan program are as follows:

A Good Credit Score Is A Basic Requirement

A minimum FICO credit score of 700 plus is considered suitable for a Jumbo loan program. The credit score also varies from a lender. Some may require a 740, while some might settle for 680-700. With a low credit score, your interest rate increases. This will eventually increase your monthly down payments.

Government Relaxation On Property Types

There are no restrictions on buying any property. You can shop for expensive homes, private homes, vacation homes, and investment properties.

Cash Reserves Are A Must

Lenders require strong financial proof to grant fixed jumbo loans. Some lenders check your bank statements and income stubs and require a minimum amount of cash reserves to qualify for the Jumbo Loan program. The amount of cash reserves depends on lenders and property prices.

A Low Debt-To-Income (DTI) Ratio Is Necessary

To qualify for a Jumbo loan, you need to have a debt-to-income ratio of 38% to 43% — the lower the DTI, the higher chances of qualifying for a fixed Jumbo loan program. Also, low DTI helps to decrease the interest rate of the average market rate of fixed jumbo loans.

Since jumbo loan lenders have a free hand to set rules and restrictions, it’s preferable to shop around to choose the best 30-year fixed jumbo loan program that fulfills your requirements. Some lenders ask for PMI for a down payment under 20%. However, it’s not always the case; some lenders offer no PMI over down payments ranging from 10-20%. So, choose wisely and according to your financial requirements and capability.

Federal Housing Adminstration Mortgages (FHA)

Adjustable rate mortgage (ARM)

Fixed rate

Veterans Affairs(VA)

0 Down Program

Reverse Mortgage Loan (RM)

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