What is a jumbo loan?
A Jumbo loan is any loan that is above $647,200. If you need a loan above this amount, you no longer fit into the conventional “box” (please see Conventional Home Loans for amounts below this amount). Many Jumbo products follow the standard Fannie Mae underwriting requirements with some subtle changes. These changes will vary from bank to bank and even between different products within the same bank.
A few key features of Jumbo Loans are:
- No Loan limit
- One-Time Close Construction Options
- 10% Down Payment Options
- No Mortgage Insurance
- Cash-Out Refinances Allowed
How we can help you secure your jumbo loan in Whitefish, Kalispell or the greater Flathead Valley
Navigating the Jumbo lending world can be a daunting task. Since these loans are not backed by one of the big government-serviced entities, the guidelines can vary from bank to bank. There is no “standard” and each group of investors have different levels of risk tolerance. What does this mean for you? It is extremely important to have a knowledgeable advisor who can look at your overall profile and match that with the right lending program. We have relationships with multiple banks that all have their own Jumbo rules. Some are easier with rural properties and some are more relaxed on self-employed borrowers. Understanding the benefits and pitfalls of each product will help make sure you get the best possible terms on your next jumbo loan.
Do I Qualify?
To determine if you qualify, lenders review your total monthly debt (proposed housing payment + regular monthly debt) as a percentage of your total gross monthly income. The acceptable percentage (DTI) will vary depending upon the specific loan program for which you apply.