Congratulations! Buying a new home to call your own is a major accomplishment in your life. Buying a home can be one of the most stressful — and exciting — moments of your life. Purchasing a home is a big decision, one that has an impact on your credit and finances like no other purchase could. Did you know the vast majority of homes are purchased through mortgage? However, most traditional mortgages require a certain percentage down — many potential homeowners might not have that certain amount of money to put down.
What if you meet all other requirements but just don’t have the cash for that huge down payment? Fortunately, there are numerous down payment options out there designed to get you into your dream home with little to money down. In this article nationwide mortgage will discuss a few options that will help make your dream come true.
A jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy a sunrise reverse mortgage from lenders. The limit is $424,100 in most parts of the United States but is $625,500 in the highest-cost areas and in-between in others. The cost of a jumbo loan is higher than a standard loan, so expect a higher interest rate for a jumbo loan.
Qualifications for Jumbo Loans
If you are considering purchasing a home, you will need to know what is required to be eligible for Sunrise Jumbo loans. If the price of the home exceeds the conforming limit of $453,100 which is set by Fannie Mae or Freddie Mac, then a jumbo loan is needed. Once you have reviewed the requirements, you can begin getting everything together.
To qualify for a jumbo loan, you will need to meet the following criteria:
- Minimum credit score of 680. A lower credit score may be accepted if a larger down payment is put down.
- Minimum down payment of 20% (sometimes can be lower)
- Debt to income ratio cannot exceed 43%. (Some lenders will deviate from this percentage.)
- Applicant must have all paperwork including:
- Proof of income
- Proof of liquid assets
- Paperwork on any other loan
- Evidence of non-liquid assets
If you meet these requirements, then you need to choose a lender. They will tell you if there are any additional requirements. Our lenders at NHL will help you from the beginning until the end. We will stick by your side and answer any questions that you may have.
Is it Difficult to Qualify for Jumbo Home Loans?
Over the years, it has become more difficult to qualify for jumbo home loans. Prior to 2007/2008, it was easy to qualify for a jumbo loan. This was due to lenders finding creative ways to extend financing. Then during the economic turn down, they were left with several foreclosed properties.
To avoid this, they put strict guidelines in place to qualify for jumbo loans. First, the applicant needs to have a credit score of 680 or higher. They also need to have a 20% down payment. The monthly payment cannot exceed 43% of pretax income. The applicant will also need to have all required paperwork in order. The documentation required varies by the lender but should provide proof of any claim. Some of the most common forms of documentation include the following:
- Proof of income
- Proof all liquid assets
- Proof of other non-liquid assets
- Documentation on any other loans
If the borrower does not meet any of these areas, they will need to check to see if there are any exceptions. If the lender does not agree to the exceptions, then the borrower will need to look elsewhere for a house. While looking, they need to ensure it does not exceed the conforming limit.
Get the Lowest Jumbo Mortgage Rates Possible
If you are in the process of purchasing a home and you are interested in getting the lowest possible jumbo loan rates, you should pay careful attention to your credit as well as have a sizable down payment.
When it comes to your credit, the higher it is, the better the interest rate you will receive. The reason being, when you have good credit, it shows that you pay your bills on time and have low balances on your credit cards so you will most likely be able always to pay your mortgage payment on time. Because of this, some lenders will offer lower Sunrise Mortgage rates. If you can make a down payment that exceeds the minimum of 10 to 20%, the lender will most likely extend lower interest rates.
Why choose Nationwide Home Loans?
We are a Florida based mortgage lending firm recognized for our outstanding customer service and the strong reputation for getting even the most difficult of loans closed. We offer a wide variety of mortgage rates in Florida, competitive pricing and sound advice about what is best for each client’s individual situation.
As a full-service mortgage lender, Nationwide Home Loans has made the dream of homeownership come true for thousands of home buyers. We are able to offer a wide range of products, including;
Sunrise Home Loans, Sunrise FHA Loans, Sunrise VA Home Loans, and various terms on fixed or adjustable rate loans. Whether you are buying, refinancing, or building your home, Nationwide Home Loans can provide you with the best mortgage rates in Florida to meet your specific needs.