Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans but offer higher dollar amounts for well qualified high income generating buyers. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes.
Some reason why you may want to consider a Jumbo Loan:
1. In your area, the average house may cost more than the cap set by Freddie Mac or Fannie Mae.
- The only option open to you may be a jumbo loan.
2. You may also be a family that can afford the monthly payments, but have not yet saved up enough to put down a huge down payment.
- Jumbo loans are one way to finance a huge loan without a paying a big amount upfront.
3. If you are choosing to stay in your home for a long time , more than 15 years, than you may not want to house shop and move frequently. You want to buy as much house as you can afford.
- In this case, a jumbo loan allows you to get into a bigger home than you would typically get with a standard conforming loan.
4. It will increase your credit faster than a traditional loan.
- Since jumbo loans typically have a higher rate of default than a typical loan, if you pay your jumbo on time your credit score will reflect your good financial practices.
- This will make it easier to get a loan for anything else you may want in the future.
If you are ready to take a jump into the jumbo loan pool, then there are some great advantages that you will have. A bigger home, better credit, and less down are just some of the attractive aspects to getting into your non traditional loan.
If you have questions or are interested in applying for a Jumbo Loan you can apply online now or contact us directly at (909) 456-1462.