WHAT IS A JUMBO LOAN?
If you’re interested in purchasing a luxury or high-priced residence, a jumbo mortgage in California could be your ideal choice. HPI Financial offers jumbo loan options for borrowers seeking that very special property. Qualifying for this type of financing depends on these criteria:
Relatively Low Debt-to-Income Ratio
High Credit Score
Large Down Payment
Once you meet these criteria as determined by the lender, you may qualify for a jumbo mortgage in California.
Borrowers may be surprised by the flexibility of a jumbo loan. With standard conforming loans, the loan ceiling generally is $424,000. In most cases, you simply can’t borrow more than this. There are, however, exceptions to this limit in certain parts of the country.
A jumbo loan enables borrowers to exceed the limit for the purchase of a higher-priced property. When is a home loan considered jumbo? Any time the mortgage amount rises above the Fannie Mae and Freddie Mac loan-servicing maximums, it qualifies for the jumbo designation. At present, the limitation is set at $424,100 for a single-family residence. This limit applies in almost all states. Higher limits, however, have been set in Hawaii and Alaska, as well as in several federally-designated high-cost areas.
JUMBO LOAN HIGHLIGHTS
LOW DEBT TO INCOME RATIO
HIGH CREDIT SCORE
WHO CAN BENEFIT?
Diversity also is evident in the selection of terms offered with a jumbo loan in California. Fixed rate and adjustable rates are among the possible options available to applicants.
Remember, a jumbo mortgage has more stringent requirements than other types. When applying for such a loan, borrowers should be prepared for higher interest rates, as well as a higher down payment than that required with conventional mortgages. But the reward will be worth the investment.
At HPI Financial, we’ll help you get the extraordinary home you’ve always wanted. With considerable knowledge and experience in the field of jumbo loans, our specialists will forge a path to your goals at the best possible terms.
Content by HPI Financial San Francisco Mortgage Brokers