Jumbo Loans

Bluestar Mortgage of Orlando, is the trusted choice for Jumbo Loans. Give us a call at 847-230-4030 to speak with a Jumbo loan expert who can assist you in determining if a Jumbo Home loan is the right option for you. You can also click on the schedule a free consultation button above.

What Is a Jumbo Loan?

A jumbo loan is a form of financing loan that surpasses the limits established by the Federal Housing Finance Agency (FHFA) and cannot be bought, warranted, or protected by Fannie Mae or Freddie Mac. Suppose you plan to purchase luxurious or high-priced properties in the wealthiest neighborhoods like Silicon Valley. In that case, the jumbo loan might you need to finance that expensive house or investment.

A jumbo loan’s cost and eligibility procedure differ by location and the mortgage lender. The amount limit likewise varies from the conventional loan rates, but payment schemes and other information are usually similar. And houses that surpass the traditional local mortgage limit need to secure a jumbo home loan.

Jumbo Loan Rates

Compared to a conventional loan rate, the jumbo loan rate varies, which can be higher or lower. For instance, the charge of Wells Fargo to the 30-year fixed rate on a conventional loan on the annual percentage rate (APR) is 3.360%, while for the similar tenure on a jumbo loan, a 3.065% APR. While presently, as per the analysis of Bank rates to loan lenders, the usual charge for a jumbo APR of a 30-year property purchase is 4.92%. Initial payments are estimated to be 10 to 15 percent of the overall purchase amount.

Advantages of a jumbo loan

The primary advantage of a jumbo loan is that it permits the borrower to obtain beyond the limits enforced by Fannie Mae or Freddie Mac. Say you would like to secure a $1 million fund contrary to a $1.5 million property, this will be feasible through the jumbo loan.

A jumbo loan can also be a beneficial financial tool and an investment scheme, especially for others who choose to invest more in funding the cost of their homes instead of confining it to cash. Furthermore, you can continue to support your property and acquire a competitive interest rate without being controlled by the dollar restrictions on conventional loans.

Requirements for Jumbo Loan

The qualifying conditions for a jumbo loan are more difficult because it holds a large amount of money and is a lot riskier for the lenders since Fannie Mae or Freddie Mac does not protect it. Below are the usual requirements to obtain approval for a jumbo loan:

  • A higher credit score of above 700.
  • A considerably low debt-to-income ratio, typically 43% and below.
  • Available cash on hand to show that you can cover the payments, which can be very high for a 30-year fixed-rate mortgage.
  • For freelance workers, the required income would be enormous. Necessary documentations are tax returns for two years and an existing bank account statement of at least 60 days.
  • Initial or down payment generally ranges from 10 to 20 percent.
  • Cash reserves or liquid assets to ensure loan pay-offs between 6 to 12 months.

Connect with a Bluestar Jumbo Home Loan Expert

If you are interested in a Jumbo loan, call us at: 847-230-4030 to speak with a Jumbo loan expert who can assist you in determining if a Jumbo loan is the right option for you.

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