What Is A Jumbo Loan?
A jumbo loan is defined as one that exceeds the maximum conventional loan limits established by Fannie Mae and Freddie Mac. Typically, a jumbo loan is used to buy a more expensive home and will require a higher down payment than conventional loans. Long Beach Home Loan is proud to offer very competitive jumbo loan interest rates and flexible down payment options for our clients.
What Can Jumbo Loans Be Used For?
A Long Beach Home Loan jumbo loan can either be used to purchase a new home or refinance an existing mortgage. A jumbo refinance can help homeowners reduce the interest rate, lower payments, or even consolidate multiple liens (1st & 2nd) into one mortgage payment.
Jumbo Loan Requirements
- Income Requirements: A backend debt-to-income ratio of 43% is generally needed for Jumbo loans, however due to the manual underwriting guidelines for these large loans a lower backend ratio may be required.
- Down Payment: A down payment of 20% typically gets the best interest rates, however some lenders will allow for as little as 10% down on jumbo loans.
- Credit Score: The lowest middle score accepted for a Long Beach Home Loan jumbo loan is 700.
- Property Requirements: All properties that use a Long Beach Home Loan jumbo loan must meet specific lender overlaid safety and security requirements.
Working With A Qualified Lender
At Long Beach Home Loan we are committed to serving clients throughout the state of California with all of their home needs. If you are thinking about purchasing your first home, or refinancing your existing jumbo loan, we can help! Contact me, Jack Skovgard (562-340-9453), for any questions you may have about jumbo loans to see if one might be right for you.