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.

Big Benefits to Jumbo Loans

Jumbo Mortgage Loans

What is a Jumbo Mortgage Loan?

A jumbo loan is a loan that exceeds conventional or conforming loan limits. In most places the conventional loan limits are $417,000. In some places, where cost of living is higher, the jumbo loan limits are higher.

This begs the question, what is a conventional loan? A conventional loan is a loan that Fannie Mae and Freddie Mac are willing to guarantee. Fannie and Freddie will guarantee loans up to the conforming loan limit of $417,000 (in most areas).

Jumbo Mortgage Loan Rates

Historically, jumbo loan mortgage rates have been higher than conventional loan mortgage rates. Recently, the gap between conforming and jumbo loan rates has decreased. Jumbo loans have become more affordable. There could be a number of reasons why jumbo loan rates have not risen with conventional loan mortgage rates, but one thing is certain; it is a great time to take advantage jumbo mortgage financing.

Perks of Jumbo Loans

While jumbo loans typically require a higher down payment, have higher credit score and reserves requirements than conforming mortgage loans, the perks of the jumbo loan are numerous. Jumbo loans have no private mortgage insurance requirements and savvy borrowers are sure to recognize the tax benefits gained by deducting interest payments (on loans up to 1 million dollars)*.

Apply for a Jumbo Mortgage Loan

Find a licensed Inlanta Mortgage loan officer in your area using our branch locator and securely submit your application online –  or simply call for more information. There isn’t a moment to lose if mortgage rates rise as anticipated by the majority of the mortgage industry.

*Consult your tax advisor for more information on mortgage interest deductions.

Our Mission Statement

Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. 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. Inlanta Mortgage was also recently recognized as a USDA Platinum Million Dollar mortgage lender by the USDA Rural Development Guaranteed Rural Housing Program.

Conforming Loan Limits Stay the Same

Conforming Loan Limits Unchanged in 2013

What are Conforming Loans?

Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Freddie Mac and Fannie Mae are government-sponsored enterprises (GSEs) that buy mortgages on the secondary market, pool them and sell them as a mortgage-backed security to investors on the open market. The Office of Federal Housing Enterprise Oversight (OFHEO) sets the criteria on what constitutes a conforming loan limit that Fannie Mae and Freddie Mac can buy.

What are the 2013 Conforming Loan Limits?

On November 29th, the Federal Housing Finance Agency (FHFA) announced that conforming loan limits for Fannie Mae and Freddie Mac would remain unchanged.

For 2013, the maximum conforming loan limit will remain $417,000 for one-unit properties in much of the country. For a list of the 2013 conforming loan limits for all counties and county-equivalent areas in the country click here.

What are Non-Conforming Loans?

Non-conforming loans are also known as jumbo loans because they exceed the conforming limits set by the OFHEO. Non-conforming loans typically have higher rates associated with them because they are not as easy to sell in the secondary market. Since they are harder to sell in the secondary market, they cost consumers more money in the form of higher interest rates.

Loan Questions?

Inlanta Mortgage licensed mortgage loan originators are available to answer your questions about home financing and determine the best option for your specific situation. Click here to find a licensed mortgage loan officer near you.

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

Inlanta Mortgage is a multi-state mortgage banker headquartered in Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.