Jumbo Mortgage Lenders: Requirements You Need to Know

Finding jumbo mortgage lenders isn't as easy as finding lenders to service a conventional home mortgage. Jumbo mortgages are loans that exceed conventional loan amount limitations. Default risk, or nonpayment of the home mortgage, is particularly more worrisome to banks so they impose strict guideline requirements for all applications.

General Requirements for Jumbo Mortgage Home Loans

Most of the requirements associated with applying for jumbo mortgage home loan are about the same as those of conventional home mortgage applications. However, there are a few areas that banks, or lenders, pay particularly close attention to.

Banks generally require a larger down payment. Generally speaking, banks like to see at least 10-30 percent down for jumbo loan programs.  Additionally, they may require significantly higher personal credit scores and credit histories for potential applicants. With conventional home loans, people can generally purchase a home with scores in the low 660s; however for jumbo home mortgages most lenders like to see scores of 720 or above.

If you are considering purchasing a home, you may want to enlist the services of a professional home loan broker to assist you. They can be experienced and can offer you a wealth of information and guidance regarding jumbo home mortgage loans.

blog comments powered by Disqus