How Can a Jumbo Loan Help you When Buying a High Priced House?
Yes! You may qualify for a Jumbo loan. This is an excellent loan program for home buyers with good financial standing and can afford a higher mortgage payment. Now you must be wondering, what is a jumbo loan?
What is a Jumbo Loan?
Jumbo loans are usually used for buying high-priced houses. Potential buyers for larger homes should have a strong and stable financial condition to secure large mortgage loans. They are required to have a high credit score with a low ratio of debt-to-income along with sufficient cash reserves to support their mortgage.
But before you go for a jumbo loan, remember that you should be capable of bearing a more significant financial burden. Fannie Mae or Freddie Mac, the chartered lenders of government for home loans, do not handle jumbo mortgages. This means that the jumbo loan is kept on the book of the lenders who have their requirements of underwriting. Jumbo loans are not purchased by government entities. Therefore, eligibility may vary depending on lender.
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