What is a Jumbo Loan?
The main difference between a jumbo and a conforming, or conventional, loan is the size: Jumbos are loans of over $417,000 — the maximum limit on a federally backed loan such as a Fannie Mae mortgage.
Because non-conforming loans are bigger than those that have a federally backed guaranty, you have to go through a private lender to get the financing for a jumbo. And because these loans are so big, you can expect more scrutiny in order meet the qualifications for the loan.
Otherwise these loans behave the same way as other mortgages. You can refinance with a jumbo loan, and you have the option of either fixed or adjustable rate mortgages (ARMs).
Lenders are looking for evidence of solid financial security when prospective homeowners come to them looking to get a jumbo loan.
What’s more, you can expect the appraisal process on be lengthy, as lenders want to be absolutely sure that the house is worth the investment.
A standard non-conforming loan is a single loan that you will use to pay for your house. The Houston jumbo loan limit varies depending on the program you choose; loans amounts can go as high as $2,000,000.
Houston jumbo loan rates tend to be higher than conforming rates. Our expert team of Mortgage Bankers will be glad to explain whether this loan is a good fit for you.
A blended jumbo loan lets you roll the balance on your existing primary mortgage loan and a home equity loan together into one. This option has certain financial advantages, depending on prevailing mortgage rates.
Blended jumbos are available in either fixed or ARMs, and some loans have the option of a temporary buydown so that you can pay less interest in the first few years of the loan.
- •Low debt-to-income ratios.
- •Excellent credit.
- •The ability to make a down payment of at least 10 percent.
- •A career or work history that ensures against future default.