Do you want to own a vacation home? Does the price cross the standard mortgage limit? If that’s the case, you can still have your hands on your dream home by applying for Jumbo Loans Colorado. A jumbo loan is a home loan with more than conforming loan limits established by US Regulation. You can get this home for your first home, second home/vacation home, or investment properties. Different lenders set varied loan amount limits and terms for such loans.
What are the Requirements for Jumbo Loans?
If you are interested in a jumbo home loan, you might want to know the main requirements. It’s time to get an idea of what you must have to qualify for this loan.
Credit Score – Just like any other loan, a jumbo loan has some credit requirements.On average, a credit score of 680 plus is required to qualify. However, lenders in Orlando can set their credit score; it’s possible that some set a higher credit score limit as high risk is involved with this mortgage.
Financial Strength – Your debt to income ratio must be more than 45 percent if you want to apply for a Jumbo mortgage. It would be best if you were employed and working for the same employer for at least three years. You will establish an income proof document with your loan application, and there must be a growth pattern in your income.
Down Payment – You can make the most from an option of a jumbo loan with private mortgage insurance. For this purpose, you must have a credit score above 700 and be ready to pay at least five percent down payment. If your down payment is low, then your interest rates and monthly payments will be higher. It would help if you tried to drop it down by giving more than five percent of downpayment. However, many lenders are offering jumbo loans with no mortgage insurance and less than 20 percent of the purchase price as a down payment.
Property Appraisal – A lender may require you to furnish two property appraisals based on the type of property and loan amount.
If you are meeting all the basic requirements, then you can apply for jumbo loans Colorado online. All you have to do is to provide all the documents. When it comes to interest rates, then you can opt for fixed or variable rates. If you want to know the exact estimate of this loan, then you should use a jumbo loan calculator available online.
