Jumbo Mortgage Loans
Jumbo or Non-Conforming mortgages require a minimum loan amount of $417,001 and range up through multi-million dollar loan amounts. The minimum credit score and down payment/equity requirements are higher than those of any other mortgage type, and the specific qualifying criteria for these loans are determined by individual lenders. In most cases a minimum 20% equity is required to qualify for a Jumbo mortgage. While not the norm, in some cases there are a few Jumbo programs that allow for as little as 10% equity.
Rates for Jumbo mortgages are usually 0.25-0.5% more than traditional conforming mortgages. However, this spread varys depending on market conditions. Primary residences, second homes, and investment properties are all eligible for Jumbo loan financing.
Also Read: Jumbo Loans: What You Can (And Can’t) Buy
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