Not all mortgages are the same. Jumbo loans are a financing option for homes and properties that are higher in value than your standard family residences. If you plan on applying for a jumbo loan, having the right information is a must to help you navigate the process.

Common Jumbo Loan Questions

How do jumbo loans & conventional loans differ?

Jumbo loans are used to purchase property that is expensive, such as a vacation home or commercial real estate. The Federal Housing Agency considers any loan greater than $417,000 a jumbo or non-conforming loan. However, limits are higher or lower depending on where you live.

How do you qualify for this type of loan?

The bigger the loan you’re applying for, the more risk the lender assumes. As a result, people applying for jumbo loans must have an impeccable credit score of 700 or higher. They must establish an income history going back a few years, as well as a reasonable debt-to-income ratio.

How much of a down payment is required?

While conventional home loans can require a down payment as low as 3%, jumbo loans usually entail a larger down payment. On average, expect a down payment as large as 20%, although lenders may go a little lower based on your situation.

What can you expect from interest rates?

Interest rates are usually higher with this loan. You can also choose a fixed or adjustable-rate loan when it comes to interest. Fixed-rate mortgages retain the same level of interest throughout the duration. Adjustable-rate loans tend to be lower at first, but interest rates fluctuate during the loan.

When looking for loan options, work with an agent that has experience. In O'Fallon, MO, Dan Main provides the benefit of more than two decades of experience when financing a home. He’ll sit down with you and explain the different options you have. He will also help you find financing for new construction or reduce the amount of your current mortgage via refinancing. Learn more about his mortgage programs online or call (636) 284-4144 to schedule an appointment today.

Dan Main: NMLS # 502036
Flat Branch Home Loans: NMLS # 224149
201 Salt Lick Rd
St. Peters, MO
This is for informational purposes only and not an offer to lend or extend credit.