One of the most important components of shopping for a home is identifying the type of mortgage that best suits your needs. You may need a jumbo loan to buy the house of your dreams, or, in some areas of the country, to buy any house at all.
What Is A Jumbo Loan?
A jumbo loan, or jumbo mortgage, is a mortgage loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans are called non-conforming loans because they don’t conform to these limits.
How Does A Jumbo Home Loan Work?
Like conventional mortgages, jumbo loans come in a variety of terms and repayment schedules, and they can be fixed-rate or adjustable-rate loans.
However, jumbo loans work differently than conventional mortgages. These loans have stricter requirements than other types of mortgages, and you’ll have to meet very specific property type, down payment, credit score and debt-to-income ratio requirements to get one.
Choosing the right mortgage loan is a big decision – one that should not be taken lightly. There are many factors to consider and numerous loan options available and even if you’re short on savings. Doing your research ahead of time will help you make the best decision for your individual circumstances. There may be first-time home buyer programs offering cash assistance that could put you in a home much sooner. Talk to your real estate agent, lender, and financial advisor to learn more about each type of loan and find out which one is right for you.
Would you like to know if you qualify for this mortgage loan? Call us today at 832.403.3353 or book a meeting: