Financing your house with a large loan
Today First Colorado Lending is happy to announce the addition of a “True Jumbo” loan, our Big and Easy. The Big and Easy allows Jumbo Borrowers to finance up to $2,500,000 with guidelines that are clear and simple.
The Big and Easy offers a variety of financing options that include a 30 year fixed, 15 year fixed, 10 year arm and 5 year arms. FICO scores as low as a 720 and LTV’s up to 80%. Eligible Properties types for the Big and Easy include Primary Residence, Second Homes, Condo’s, PUD’s, and 2 Units.
The Big and Easy truly follows the standard of commitment, consistency and customer service and it is the we can close in 2 weeks or less, if needed
Traditional conforming loans have a maximum limit set by the Office of Federal Housing Enterprise Oversight (OFHEO), which designates the highest amount Fannie Mae (FNMA) and Freddie Mac (FHLMC) are able to securitize.
Any loan amount above this limit, as an example most of the Denver Boulder area has a limit of $417,000, so any amount over this is considered a Jumbo Mortgage. These types of mortgages are underwritten and guaranteed privately by banks and mortgage bankers.
You can use a Jumbo Mortgage for a home purchase loan or to refinance a home mortgage you already own.
It is getting easier to refinancing a jumbo loan if you have 20 percent equity in your home. There are many reasons to refinance a home loan. You may want to lower your interest rate or monthly payments; perhaps you want to cash out refinance to pay for remodeling or a home improvement project; or maybe you just want to change the terms of your loan.
When a loan amount is above the conforming loan limit, borrowers have to take a jumbo mortgage. Jumbo mortgages carry higher interest rates, higher costs, and steeper eligibility requirements.
The key to know is Borrowers have to prove a high income, excellent credit score and ability to make a 20 percent down payment.
The reasoning is if a jumbo mortgage loan defaults, it can be hard to sell the property quickly for a good so lenders of jumbo mortgages take a larger risk Therefore, borrowers taking a jumbo mortgage must prove their financial responsibility and reliability. Having a high income demonstrates an ability to support mortgage payments.
In order to qualify for a jumbo mortgage, you will have to have a lower debt-to-income ratio that allows you comfortably to pay the principal, interest, taxes and insurance each month.
As a rule, your monthly mortgage payment on a jumbo loan should not exceed 38 percent of your pre-tax income. Be prepared to present proof of your income as Jumbo borrowers typically have to fully document two years of income history.
A good credit score is essential to qualify for a jumbo mortgage and required scores can vary, but right now borrowers need a score of at least 720.
The Down payment requirements are demanding, due to the risk the lender takes, down payment requirements for jumbo loans are strict and in most cases than 20 percent of the home cost as a down payment.
The last to know about is not all properties qualify, although each is different, many will not be approved on certain types of vacation homes and investment properties.
At First Colorado Lending our only job is finding you the best loan program available. We are independent and do not work for one particular lending institution nor are we tied to just one product line. Since we are unbiased we can search all our lending sources and find the best possible loan program and rate currently available.
Individual NMLS- 216873
Colorado MLO- 100039988
Company NMLS- 1023030