Non Conforming Conventional Mortgages or Jumbo Loans

Jumbo Loans, also known as non-conforming conventional mortgages, are for homes exceeding the value of Conventional Loans as established by the FHFA. (While these values can vary by state or even county, the current conforming loan limit for one-unit homes in most counties nationwide is $806,500). They are designed and use mainly to finance homes in very competitive real estate markets or more expensive luxury homes. Jumbo Loans are usually available with a fixed interest rate or an adjustable rate. Call the Score team now at  (314) 607-5566 to discuss if you qualify for a jumbo loan.

Who is eligible for Jumbo Loans?

For homeowners and prospective buyers looking into Jumbo Loans, the credit requirements are more restricted than those for traditional Conventional Loans. They also require specific tax implications or underwriting obligations. While the average APR can be similar to a Conventional Loan, the down payments have to be 10%-15% of the purchase price. Most significantly, approval for Jumbo Loans require an outstanding credit score, as well as a very low debt-to-income ratio (DTI).

Features and Benefits of Jumbo Loans

  • You get more

    The main reason for Jumbo Loans? You have the opportunity to access more money for a larger or more luxurious home.

  • Lower down payments, (maybe) lower rates

    Unlike the typical 20% down that comes with a Conventional Loan, a Jumbo Loan can come with lower down payments (often 10%, though some may be as low as 5%). Also, as of late, interest rates for Jumbo Loans have fallen, sometimes lower than those of Conventional Loans.

  • Lots of options

    Jumbo Loans can give you flexibility in choosing the mortgage that works for you. How about an adjustable rate mortgage? Or maybe a 30-year fixed rate? With Jumbo Loans, you have options.