In most cases, a bigger home needs a bigger loan. If you’re
planning on purchasing a home that exceeds the cost of a conforming loan (typically $424,100), you’ll likely need to use a
jumbo mortgage.
There are multiple factors considered when applying for a home loan of this type, including the borrower’s credit score, financial strength, amount of down payment and the appraisal on the property itself. For instance, if you have high net worth but poor credit, you might not qualify for a jumbo mortgage. Or, if the home is priced well above the property’s appraisal, it could also be considered grounds for loan denial.
In addition to being able to purchase a more valuable home, jumbo mortgage rates have reached historic lows lately, and you could also be able to take out a second mortgage for a higher loan-to-value ratio.
If you’re eyeing a jumbo home that will need a jumbo loan,
contact Midwest Equity Mortgage, LLC to speak with one of
our mortgage experts. We’ll guide you through the entire home loan process to help you turn your dream home into your reality.
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