• Jumbo Loans

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    • Jumbo Loans are a type of loan that exceeds the conforming loan limit. So this loan would fall under a non-conforming type loan. This means the loan is not able to be touched by Freddie Mac or Fannie Mae. That means the Jumbo Loan does not have to abide by the those set limits. These loans are for homes with higher prices and more in the ‘luxury” category. The Jumbo Loan comes with unique underwriting policies and tax implications.

      Therefore, if you are looking at buying a house, in Oregon, that’s half a million dollars or more, you’re probably going to need to get a jumbo loan. Also, yes, when you try to get one, you’ll have to deal with much stricter guidelines and qualifications. That’s because the jumbo loans are far riskier than a conforming loan so the lender is going to want to make sure you can handle that type of mortgage payment.

      Jumbo Loan Requirements

       

      • A 700 or above credit score is ideal. However,  newer programs have introduced options with lower requirements.
      • A low total debt to income ratio (around 42%)
      • A substantial saving to cover closing costs.
      • Residual savings to cover 2-6 months of mortgage payments
      • 2 years worth of W-2’s and Federal Tax Returns

      Jumbo Loan Interest Rates

      Jumbo loans used to have higher interest rates than your conforming home loans. However, in the past few years, that gap has been closing, as investors seek opportunities to invest in alternative mortgage products than Fannie, Freddie, and Ginnie Mae offer.

      Jumbo Loan Down Payments

      Thankfully, the past few years we’ve seen jumbo loan down payment requirements drop from 30% of the home loan to as little as 5%. While we can’t ever control this nor promise it will always be this way, we’re excited this is the trend we’re seeing.

      Is the Jumbo Loan Right for You?

      It all depends on your collective wealth from assets, cash, investments, debt to income ratio, credit score, and down payment amount. If you think you might qualify for a jumbo loan and are looking at a house over $484,350, it might be the right loan.

      Contact Us

      Strategic Mortgage Solutions offers a suite of Jumbo loan products for Oregon home buyers – Premiere, Select, and Choice. Through these three options, our customers in OR are provided choices in how they would like to structure their loan based on eligibility. With each choice, flexibility with eligibility requirements are considered.

      Contact us today to apply or learn more.