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Jumbo Home Loan

Getting a Jumbo Home Loan through Timberline Mortgage doesn’t need to be complicated. We’re here to break it down for you as simply as possible!

What Is A Jumbo Home Loan?

Most home loans you can apply for has a limit set by the Federal Housing Finance Agency. What this means is that typical home loans, like conventional and FHA loans, are insured through banks like Fannie Mae or Freddie Mac. As of 2022, that limit is just under $650,000 in most counties in the United States. 

If the home you want is more than that, this is where a Jumbo Home Loan comes in. 

 

What Is Required To Get a Jumbo Home Loan?

 

Unlike other home loans, there are a few specific requirements that have to be met. A big reason for this is that since they aren’t insured by Fannie Mae and Freddie Mac, most lenders are taking on a lot more risk because of the amount of money involved.

 

Down Payment Requirements

Unlike the 20% you might need for a Conventional Loan, some lenders would require 10-15% for a down payment. This may seem like a better deal, but depending on the size of the loan, it may end up being negligible in the end.

 

Debt-To-Income

Most mortgages would require that your debt-to-income ratio doesn’t exceed 43%, meaning no more than 43% of your income should be going toward paying debts. With Jumbo Home Loans, you have a bit more flexibility and can potentially get the loan if your DTI is higher than 43%, but it largely depends on the lender. 

 

Credit Score

Because there is more money involved, and therefore more risk, your credit rating needs to be within at least the “Good” range (at least a 670 FICO score). However, some lenders may require a “Very Good” rating (at least a 740) or better.  

 

When Should I Get A Jumbo Home Loan?

 

Jumbo Home Loans tend to work best for investment properties, vacation homes, or even primary residences if the home is more than $650,000. If this sounds like what you’re looking at, let Timberline Mortgage get you started!