Is a Jumbo 15% Down Loan Right for You? Here’s How to Tell
According to statistics posted by The Motley Fool, the average cost of a home in the United States went up by more than $50,000 between 2020 and 2021, so it’s no surprise that the average home loan amount increased as well. However, the maximum loan limits for most popular mortgage programs (such as FHA Loans and Conventional Loans) oftentimes fall below today’s rising prices. So what’s a homebuyer to do?
Thankfully, Veritas Funding now offers a new home loan alternative for those hoping to purchase a more expensive home: a Jumbo 15% Down Loan. With mortgage amounts up to $3 million, competitive interest rates, and several different loan-term possibilities, a Jumbo 15% Down Loan is a great option for high-earning borrowers with great credit.
Interested in learning more? Check out the facts below:
A Jumbo 15% Down Loan:
- Offers home financing in the form of a fixed-rate loan
- Is only available for owner-occupied homes (No second homes or investment properties)
- Is only available for purchase transactions (No refinances)
- Has stricter qualification requirements than conforming loans (higher credit score, lower debt-to-income ratio, higher down payment, etc.)
- May have a higher interest rate than conforming loans
- May not be available in every state or county
A Jumbo 15% Down Loan may be right for you if:
- You want to purchase a home above $500,000
- You earn a high income
- You can put 15% down
- Your FICO credit score is 700 or above
- Your debt-to-income ratio is below 45%
Don’t miss out on purchasing the home of your dreams just because the Federal Housing Finance Agency (FHFA) and/or the Federal Housing Administration (FHA) deem it too expensive! Sure, conventional mortgages like Conventional Loans and FHA Loans are great, but non-conforming loans exist for a reason, and a Jumbo 15% Down Loan may be the perfect fit for you.
If you’re in need of a mortgage that exceeds your local conforming limit, we strongly suggest you submit an application for a Jumbo 15% Down Loan now. The ideal candidate has a good job, great credit, and a significant amount of money saved for a down payment, but every situation is different, so it’s worth speaking to one of our Jumbo Loan Mortgage Lenders to learn more if you’re interested.
Not quite ready to commit? You can always chat with our digital assistant, Lydia, too! She can answer any questions you may have about current Jumbo Loan mortgage rates, Jumbo Loan qualification requirements, and Jumbo Loans in general, so don’t hesitate to message her to learn more.
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