7 Tips for easily getting Jumbo mortgage loans

    by Aditi Bansal

Updated on Donnerstag, 27. April 2017

It is usually wise to involve an experienced mortgage broker to negotiate for your hard money Jumbo loans as opposed to walking into a bank. They can shop around in multiple financial institutions, lenders, and banks to find the best rates in the market.

tags  #Jumbo mortgage loans  #Credit Score #


Every American takes pride in huge classic buildings, big cars, big movie stars, huge mortgages, and so on. No wonder the government-sponsored Freddie Mac and Fannie Mae is back in full swing after the 2008 real estate crisis. Hard money jumbo loans provide a valuable financial tool for high-end property owners.

There is light at the end of the tunnel as major banks are now willing to open up their doors for big bucks lending to qualified homebuyers who target upper echelon real estate purchases.

What is a Jumbo Loan?

A jumbo loan is typically a larger mortgage amount which is standard for state-backed lending like Freddie Mac and Fannie Mae. The loan amounts usually exceed $417,000 in most states and over $625,000 in high-cost states like San Francisco, New York, among others.

The approval process for Jumbo loans is more or less the same as with conventional loans, but there are a few factors that you should consider when undertaking a bank transaction. Whether you’re buying your million-dollar dream home or re-financing an existing large—value home, the following seven tips should guide you:

1) Consider the two-loan Option

If you’re looking at something closer to the $417,000 loan limit, consider getting two separate loans to add up to your mortgage amount. This may be more difficult now that the real estate industry is just beginning to pick up from the meltdown boom, but you might still manage your first loan at $417,000 and another smaller second loan to fill the gap.

2) Do you need an ARM?

If you’re looking to pay off your home within a few years and need the savings now, then the Shorter-term Adjustable Rate Mortgage (ARM) could be the perfect option for you. But in case the home doesn’t appreciate as anticipated, there could be a greater risk.

3) Save enough Equity

To access the best mortgage rates, even with conventional loans, you need to set aside a substantial equity of 20% or more. When it comes to Jumbo loans, setting 30% down or having 30% equity will open doors for better rates.

4) Get your Documentation proper

The Jumbo mortgage provider will require you to provide all the relevant documents, just like any loan process. However, since the loan amounts are high, banks will carry out extra scrutiny. Tax compliance reports, corporate documents, trust information, asset sheets, and other documents are a few examples of items you’ll need.

5) Look at your Exit Strategy and Long-term Plans

It’s important to think about your long-term plans and consider your exit strategy the moment you apply for hard money Jumbo loans. Check if the home will be your lifetime home or you might relocate due to work related issues.

6) Do you have a Great Credit Score?

Having a credit score of 680 is good enough for conventional loans. However, Jumbo loans require even higher credits scores. If you have at least 760 scores, you’ll get the best possible rates for hard money jumbo loans.

7) Consider getting a Buy-down

Since you’re dealing with a higher loan amount, it’s critical to consider the financial impact of a rate buy-down. That few dollars difference is what could save you huge sums with regards to quicker payoff and lower interest payments.

This page has a focus on Jumbo mortgage loans, Credit Score was shared by Aditi Bansal.

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