Congratulations on owning your home for a full year! It’s such an exciting milestone and…
Financing is available for home buyers who do not plan to make an all-cash offer. Even if the possibility exists, who wants to withdraw nearly $500,000 or greater from an investment account? Financially savvy borrowers may be able to maximize opportunities within the market, while mortgage interest rates are fantastic. To leverage the costs of expensive homes, First Florida Financial Group offers financing for borrowers with a 680 credit score.
What do I Need to Qualify for a Jumbo Mortgage Loan?
Similar to the basic items that you would need for a conventional mortgage loan, the following items are important for making a loan decision:
- Residential Mortgage Loan Application
- Proof of income
- Acceptable credit history
- Down payment
What is the Credit Score That I Need to Qualify for a Jumbo Mortgage Loan?
According to Experian, credit scores can range from 300 to 850 points. Some home buyers are misled to believe that a 580 credit is okay for a jumbo mortgage loan. For certain government-backed programs, a 580 credit score is okay for conventional home loans.
However, due to the added risks of lending larger chunks of money, a home buyer typically needs a 680 credit score or greater to obtain funding for a jumbo mortgage loan.
Are Jumbo Mortgage Loans More Expensive With a 680 Credit Score?
With a 680 credit score being the minimum requirement for a jumbo mortgage loan, the terms are unlikely to match the rates that are offered to a borrower with a 740 credit score or greater.
Although, other compensating factors might exist to offset the aforementioned scenario.
For instance, a borrower with a 740 credit score could be stretched to the max with monthly bills that result in a high debt-to-income ratio.
However, having a 680 credit score and minimal debt might be ideal.
How Much Money do I Need to Qualify for a Jumbo Mortgage Loan?
When the debt-to-income and credit score requirements are met, a down payment that is at least five percent of the purchase price may be enough to qualify for a jumbo mortgage loan.
However, more money toward the down payment will lower the monthly mortgage payment.
The logic for the underwriting risks are straightforward.
A qualified home buyer provides proof of funds for a 5% down jumbo mortgage loan and a lender provides the additional 95% toward the purchase price.
Getting a jumbo mortgage loan is not too difficult with help from an experienced team of professionals.
Contact First Florida Financial Group today to inquire about loans for luxury properties.