There are some great new Super Jumbo Loans available in California only, making purchasing homes at higher California price points more accessible to buyers. Read on to learn more about jumbo loans and super jumbo loans and the terms of these great new loan products.
What is a Jumbo Loan?
A jumbo loan is a mortgage loan that lends a larger amount of money than is offered within the loan servicing limits of conventional loans that are set by Freddie Mac and Fannie Mae.
Jumbo loans can also be called jumbo mortgages. These loans are made available for primary residences, second or vacation homes, and investment properties. Jumbo loans can be available in different term options including fixed-rate and adjustable-rate loans. Jumbo loans are not eligible to be sold to Fannie Mae or Freddie Mac so underwriting terms and guidelines are left up wholly to the lending institution or bank that is originating the loan. This helps to create more Jumbo loan options for loan applicants.
Jumbo loans can be made available in certain locations, to people with certain financial profiles, and specific loan requests. The number of jumbo loan options is vast and the best way to find the right jumbo loan product is to work with an experienced mortgage broker local to where you are purchasing a home. They can help you compare all options and find the perfect choice for your specific financial needs.
What is a Super Jumbo Loan?
Jumbo loans and Super Jumbo loans are essentially the same types of mortgage loans. Sometimes a loan will be called a super jumbo loan due to the amount of money it is making available to lend. Some lenders will title loans above the Fannie Mae and Freddie Mac limits that lend up to $1 million a jumbo loan and title loans lending out anything over $1million a Super Jumbo loan. The title used for a larger home loan is really dependent upon the bank or lending agency.
Laws About Jumbo Loans
Jumbo loans do not need to follow rules set for conventional loans but are still subject to many different laws. Some of these laws include the Home Ownership and Equity Protection Act and being classified under HOEPA. Sometimes you may hear jumbo loans referred to as section 32 loans or section 35 loans. Each of these is used to classify high-cost loans and they each have their own restrictions and disclosure requirements.
New Super Jumbo Loans Available in California Only
Right now there are new jumbo loan programs available only to borrowers in California. These loans offer borrowable amounts of up to $8.5 million dollars! The minimum amount borrowable is $2 million.
Key Facts About These Loans
- Applicants must have a credit score of 720 or higher
- A14 Bank Statements- applicants can provide 12 to 24 months of bank statements to verify income, these can be business or personal
- Debt-to-income ratio must be at or below 50%
- Gifts for help with payments and costs are not permitted
- Credit history report must show no foreclosure, bankruptcy, or deed in lieu of foreclosure in the past 7 years
- Credit history must show no short sale or pre-foreclosure of loan modification in the last 4 years
- 2 appraisals will be required for the property being purchased
- Down payment requirement is specific to loan amount
For more information on these great loan products only available in the state of California and all available jumbo loans in Mission Viejo and California please contact me at any time. For more information on your mortgage options in Mission Viejo and surrounding areas please contact me any time.
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