What to Know About Jumbo Loans

 

  • Reserves – You must verify adequate reserves (assets) on the subject property and any other properties you own. This can include retirement funds.
  • Liquid Assets – Your down payment must be available in liquid assets.
  • Debt to Income – Your debt typically cannot exceed 43% of your income. This may vary, but normally the Debt to Income requirements are more strict with jumbo loans than with other loan types.
  • Appraisal – Appraisal is often the lynch-pin of the Jumbo Loan process. High-end properties may have fewer comparable sales and may have unique qualities. Jumbo Loan appraisals require a senior management review upon completion. With higher loan amounts or less down payment, another full appraisal may be required.
  • Credit – Your credit must be good to excellent. There are Jumbo Loan programs available for buyers with less than stellar credit. These programs have higher interest rates and require a higher down-payment.
  • Employment and Income – Self-Employed income needs two years of tax returns. Speak with your loan originator before assuming all of your income can be used for qualifying. We can run your tax returns through the underwriting calculator to determine exactly how much of your income will qualify.