If you want to buy a particularly expensive home -- one above the conforming loan limits in the state and county where you’re buying -- you’ll likely need a jumbo loan. While jumbo loans can often allow you to purchase a bigger and better home, they can also be more difficult to qualify for. Here are the basics of qualification for a jumbo loan.
Read MoreA 20% down payment (the standard for conventional loans) is often required for a jumbo loan -- but this isn’t always the case, and some borrowers may be able to obtain loans with down payments as low as 10-15%.
Read MoreWhile things have loosened up since the first few years after the crisis, requirements are still a bit stricter, and most potential jumbo loan borrowers should expect to make at least a 15% down payment. They should also carefully record and document their income. Plus, they may have to be okay with getting an adjustable rate loan, and making sure that their monthly payment does not exceed 38% of their income before taxes.
Read MoreA jumbo home loan is a loan that exceeds a specific amount, called the conforming loan limit. The conforming loan limit is actually calculated by county -- not by state, so depending on where exactly you live, you could face a different conforming loan limit. For most U.S. counties, the limit is set at $453,100, a nice increase from 2017’s $424,100.
Read MoreJust like private lenders, the Federal Housing Administration offers FHA jumbo loans for qualified borrowers. Much like regular FHA loans, FHA jumbo loans usually have significantly lower down payment requirements than their private counterparts.
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