Home ownership is part and parcel of the American dream. Purchasing a home is probably one of the largest investments you would have to make in your life in terms of the amount of investment.
If you have begun your journey towards home ownership then you are at the right place. Here at NHL lending, we have a large suite of products that can enable you to achieve this dream.
If you intend to purchase an expensive home, there are a number of products that we have available to you. We will proceed to talk about jumbo mortgage loans in Fort Lauderdale, FL and how they can help you achieve your dream of owning an expensive home.
What is a Jumbo Loan?
A Jumbo mortgage is a category of government-backed homeownership loan products that exceed the loan limits defined by Fannie Mae or Freddie Mac. That is it is a mortgage exceeding $484,350.
Loans that fall within the limits prescribed by Fannie Mae or Freddie Mac are called conforming loans, therefore, jumbo mortgage loans fall under the category of loans called non-conforming loans.
Where do I get my fixed rate jumbo mortgage loan in Fort Lauderdale?
Here at Kloze Home Lenders – NHL Lenders – you not only get access to large loan financing but also get personalized service that doesn’t leave you feeling like just another cog in the wheel of big banks.
What you need to qualify for a jumbo loan
Just like all other loan products Jumbo mortgages have their unique criteria which must be met for you to qualify for one. At a minimum, here are some of the requirements that you need to meet.
Good Credit history
At Kloze Home Lenders we will need evidence that you’re a low-risk borrower. This is an important criterion that we must meet and are obligated to do so by federal laws. Because the loan is backed by the federal government, we are required to meet due-diligence in ensuring that applicants are at least creditworthy.
One way of measuring your creditworthiness is through your credit score. The requirements for getting a jumbo mortgage is FICO score of above 700. Note that a credit score is only one measure of creditworthiness. And depending on our evaluation here at NHL Lending you may still be eligible for a jumbo mortgage with a lower score.
You would typically need to put down 20% of the value of the house as a down payment. The higher the amount of down payment you put down as an applicant, the lower the balance of payments you need to pay back as monthly payments.
Reduced monthly payments put you in a better financial position and reduce your risk of defaulting on the mortgage repayment. So as an applicant, the higher the amount of down payment you’re willing to put down the more attractive you appear as a mortgage applicant.
Another factor to consider is that the more the down payment you put down the lower the emphasis on the other criteria that will be used to judge your application for a jumbo mortgage. For example, your application may be accepted with a lower FICO score.
Proof of income
Your ability to meet your monthly loan repayment schedule is dependent on your cash flow situation. Your cash flow is definitely linked to your income. So at Kloze Home Lenders, we will require proof of income through legally valid documents like W2 forms.
Proof of consistent income puts you in a better bargaining position because you appear as a lower risk loan applicant.
Again, the stronger your income levels the lower the emphasis on the other criteria that will be used to judge your application.
This is basically a measure of your ability to meet your debt obligations based on income levels. The typical level that is acceptable to mortgage lenders is around 43%. But remember that this criterion is also judged in conjunction with the other criteria. So even if you have a lower debt to income ratio but you have a good credit score or have put in a large amount of down payment your loan application may still be judged favorably.