A mortgage of any amount is a major decision. One that requires serious thought and consideration. If you’re considering a jumbo loan, you might want to think a little bit harder and little bit longer. Jumbo loans mean signing on for a larger debt load, which is something you should never take lightly. A jumbo loan is larger than your typical home loan but they’re not just for mansions or a home in the Hollywood hills. Even a seemingly unassuming home in the suburbs might require a jumbo home loan if you’re purchasing a home in a high-priced neighborhood. Miramar jumbo loans are a little different than other home loans but what exactly is a jumbo mortgage?
What is a Jumbo Mortgage?
A jumbo loan is any mortgage loan that exceeds the conforming limits that have been set by Fannie Mae and Freddie Mac. This typically looks like $417,000 for a single-family home in most of the US. In higher cost living areas it can be as high as $625,000. High cost areas include New York City, Los Angeles, San Francisco, and Washington. Some other areas outside of the continental US include Alaska, Hawaii, Guam, and the US Virgin Islands.
How Are They Different?
Unlike other Miramar home loans, jumbo loans are eligible for backing by Fannie Mae or Freddie Mac. Nor are they eligible for backing by any other government entity. They are also not guaranteed in the event of default which makes them a risky prospect than lower-cost conforming mortgage packages. With a jumbo loan, there are also stricter income and financial restrictions and requirements. Along with stricter requirements, a larger down payment is required.
Jumbo Loans vs Conforming Loans
The main difference between Miramar jumbo loans and conforming loans is the size of the loan. Some other differences include heftier down payment, higher interest rates, and higher closing costs and fees. Though many loan lenders are willing to offer competitive rates that you would get on traditional conforming loans.
How to Qualify for Jumbo Loans?
If you’re looking at even a modest home in a pricier neighborhood you might need a jumbo loan. The restrictions and requirements for a jumbo loan are different than your traditional conforming loan. First, you need a minimum credit score of 680. Sometimes a lower credit score will be accepted but you will need to put down a larger down payment. A minimum down payment for a jumbo loan is 20% of the home’s selling price. This can be lower or higher depending on the terms and conditions. Remember that a higher down payment may lower the monthly payments. Your debt to income ratio may not exceed 43%, though some lenders may deviate one way or the other from this. Paperwork required to qualify includes proof of income, proof liquid assets, paperwork on any other loan, and evidence of non-liquid assets. Once you meet these requirements then you will want to choose a lender.
How Difficult is it to Qualify?
After 2008, it’s become more difficult to qualify for a Miramar jumbo home loans. Though it’s not impossible. As a result of the housing bubble burst in 2007/2008, there have been certain strict guidelines set in place for applicants. This is to protect you just as much as it is the lender. In fact, it protects you even more than the lender because it ensures that you are not taking on a loan amount that you won’t be able to pay back.
Getting the Right Mortgage for You
With Miramar mortgage rates, it’s a perfect time to buy. If you’re considering moving to a new home or moving to a new area, it’s time to start talking about mortgage rates that are right for you. Miramar jumbo loans are not impossible to get and may be the right home loan for you. If you’re curious about which home loans are right for you, give us a call to speak to one of our professional lenders. We can help you find out what your needs are and determine what your budget is. It’s time to stop dreaming and start living. Find your perfect dream home today with the best Miramar mortgage rates.