Jumbo Loans

jumboloansJumbo Loans

Jumbo loans can be an excellent choice for those who qualify, but many people either do not know this type of financing is an option or they believe some common misconceptions. To help give us a clear picture of what exactly a jumbo loan is, we asked our Fort Myers, Florida Branch Manager, Jim Marcinkowski, some common questions.

 

1.) What makes a Jumbo loan different from other loans?

Jumbo loans are for mortgage amounts over $417,000.This fact is surprising to many since a jumbo loan is commonly mistaken for a loan that is equal to or exceeds a million. The truth is, a loan that is under Fannie Mae or Freddie Mac and is over $417,000 is automatically considered a jumbo loan.

 

2.) What would make someone an ideal candidate for this loan? In other words, what are the requirements to qualify?

a. The minimum credit score is 680, but the higher the better. It is always beneficial to have a higher credit score when dealing with home loans.

b. A jumbo loan has a maximum of $3,000,000. This does not mean the value of the home. The value of the home you are buying can exceed $3 million to receive a jumbo loan, but the difference between the loan maximum and the value must be paid in cash.

c. You must have an 85% loan-to-value (LTV) ratio (or the relationship between the amount of the mortgage and property value, shown as a percentage) for a primary residence, 80% LTV for a second home.

d. Interest rates may be a little higher than conforming rates

e. Cash reserves are required. You must have 6 months of reserves for an LTV under 80% on loan amounts of $1 million and under, and18 months of reserves are required for LTVs over 80%. Depending on the LTV, reserves could go as high as 24 months.

 

3.) What are the downfalls of this type of loan?

Debt-to-income ratios can be lower than conventional, meaning the requirements on this loan are stricter when it comes to the amount of debt a person or couple can have. Those who can meet the guidelines may feel the process can be more tedious than receiving, say, a conventional loan. It makes sense that the process for this loan would involve more than most considering the loan amounts are typically higher and the lender needs enough information to prove that the borrower can successfully pay a jumbo mortgage.

 

4.) What are the benefits of this type of loan?

The interest rates for jumbo loans are at near historical lows. Interest rates are constantly fluctuating. The same is true for jumbo loans, but they still tend to linger on the lower end. Refinancing with a jumbo loan can mean better savings than a traditional loan. A jumbo loan allows refinancing at loan amounts between $417,000 and $650,000. Better savings on a refinance can go towards investments, college tuition, or anything else that may need to be paid off. Jumbo loans can also come with better offers from lenders, which may include reduced fees during the process.

 

5.) What are the different loan options within this program?

Like most other mortgages, jumbo loans come in loan terms of 10, 15, 20, 25 and 30-year fixed or adjustable rates.

 

While jumbo loans may not be the best fit for everyone, they offer many great benefits for those who qualify. If you would like to learn more about our jumbo loan program, click here. Ready to get started? Locate one of our experienced loan officers and get pre-qualified for a loan today!

 

ABOUT INLANTA MORTGAGE

Headquartered in Pewaukee, Wis., Inlanta Mortgage was established in 1993. The company has grown to 35 branches in 16 states and over 240 employees. Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac, Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs.

In 2016, Inlanta Mortgage was recently named a Top Workplace for a third consecutive year. Inlanta has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine. Inlanta has also received the Platinum Million Dollar USDA Lender Award.

PARTNERSHIP OPPORTUNITIES

Inlanta Mortgage continues to expand its branch network and encourages ethical lending professionals to learn more about our support platform and discover how an Inlanta branch partnership with Inlanta Mortgage is essential to long-term success.

Locate an Inlanta Mortgage loan officer at www.inlanta.com/locations. For current employment opportunities, visit www.inlanta.com/join-our-team/employment-opportunities. Learn more about Inlanta Mortgage branch partnership opportunities at www.inlantapartners.com, call 262-439-4260, or email partners@inlanta.com.

Inlanta Mortgage, Inc. NMLS #1016.

How to Choose a Loan Program

Choose Loan Program

How Do You Choose a Loan Program?

There is no straight forward and simple answer to this question. How you choose a loan program is dependent on several factors. Here are a few questions that will help illustrate what information is needed in order to identify the right program for your specific home financing needs:

  • How long do you want to stay in your home?
  • How much do you have for a down payment?
  • Are you a military veteran?
  • Do you live in an eligible USDA area?
  • How is your credit score?
  • What is the purchase price of the home you want to buy?
  • Would you prefer fixed payments?
  • Would you be amenable to fluctuating payments?
  • How long have you been with your employer?
  • Do you have a stable credit history?
  • Do you plan to live in the home?
  • Do you plan to buy-to-rent?

Choose a Loan Program

The best option when choosing a loan program is to sit down with a licensed mortgage loan officer and discuss your specific situation. Major loan programs available at Inlanta Mortgage include VA, USDA, FHA, Conventional and 203k Rehabilitation Loans. The loan program you qualify for will be dependent upon how you answer many of those questions above.

Here are some links to general information regarding these major loan programs.

As you will see, these loan program guidelines are general in nature. Meeting with a loan officer will help you better understand each program’s unique benefits and qualification requirements. Use our branch locator to find a loan officer near you, or click here to apply now. If you apply now, we will forward your application to a loan officer licensed to originate in your area.

About Inlanta Mortgage – Celebrating 20 Years

Celebrating its 20th Anniversary, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012 and Fastest Growing Milwaukee-Area Firms.