Jumbo Mortgages

Jumbo Loans or Jumbo Mortgages are those that exceed the conforming limits of Fannie-Mae and Freddie-Mac, which are currently set at $424,100 – if you have a loan above this amount your loan is considered a Jumbo or Non-conforming Mortgage.

Curved Stairway in Jumbo Loan Home

The high-end of the Jumbo Loan category are Jumbo Mortgages from this conforming limit up to a loan value of $1,000,000 – anything over this amount is considered a Super-Jumbo Loan or Super-Jumbo Mortgage.

With conforming mortgages you can obtain a loan with as little as a 5% down-payment. On the other hand, jumbo mortgages require at least a 20% down-payment depending on your credit-score, debt to income ratios, amount of liquid reserves, and other factors.

Jumbo loans also for the most part carry a higher interest-rate than conforming loans for two main reasons. One, there is no secondary market for Jumbo Mortgages like Fannie-Mae and Freddie-Mac for conforming mortgages. Second, it’s about spreading risk. The bank can make several smaller conforming loans versus one jumbo loan thereby there is more inherent risk in making one large loan versus several smaller loans.

When applying for a Jumbo Mortgage remember that you will have to have a higher-credit score, a lower debt to income ratio, put more money into a down-payment, and have more money in liquid reserves after closing.

At Flagstone Financial we are experts in Jumbo and Super-Jumbo loans. We understand how to package the loan and navigate the process to best insure your loan is approved.

In addition, to our own funds we have excellent relationships with wealth-management division of major banks, wholesale lenders that specialize in jumbo mortgage products, and local/regional banks.

In today’s marketplace you want to work with a lender that has direct access to multiple sources of jumbo capital in order to get the best loan for your needs.

Call us today for all your jumbo mortgage needs!

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