Jumbo Loans are becoming more common in Colorado. Home prices have been rising and more home-owners are looking to luxury homes to purchase. When your new loan amount will be above $417,000 (with some exceptions) you will most likely be looking at using a Jumbo Loan. At Colorado Mortgage Group we specialize in Jumbo Loan programs.
Here are some reasons you want a seasoned Jumbo Loan expert originating your purchase or refinance.
- Guidelines on these programs are detailed and complicated
- Buyers are often high net-worth individuals with complex finances
- Buyers may own multiple properties
- Home appraisals on high-end homes are more complicated, less “cookie-cutter”, and highly scrutinized
- Loan Programs and Guidelines change continually. You want someone who is on top of the most current information
Here are our most popular Jumbo Loan Programs
10% Down Jumbo Loan
This is our most popular Jumbo Loan program. This allows the purchase of a higher priced home with only a 10 percent down-payment. Terms are available on 5 and 7 year ARMS. Amortized over 30 years. Rates are excellent.
15% Down Jumbo Loan
With a 15 percent down-payment 30 year fixed rate options are also available. With or without PMI available.
20% Down Jumbo Loan
With a 20 percent down-payment you have access to the very lowest interest rates on all programs.
What to Know about Jumbo Loans
- Reserves – You will need to verify adequate reserves (assets) on the subject property and any other properties you own. Can include retirement funds.
- Liquid Assets – Your down payment will need to be available in liquid assets.
- Debt to Income – Your debt typically can not exceed 43% of your income. This may vary, but normally the Debt to Income requirements are more strict than other loan types.
- Appraisal – Appraisal is often the lynch-pin of the Jumbo Loan process. Higher-end properties might have fewer comparable sales and might have unique qualities. Jumbo Loan appraisals require a senior management review after upon completion. With higher loan amounts or less down payment another full appraisal may be required.
- Credit – Generally your credit must be good to excellent. There are Jumbo Loan programs available for buyers with less than stellar credit. These programs will have higher interest rates and will require a higher down-payment.
- Employment and Income – Self-Employed income will need two years 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.