Jumbo Loans: Dream Big When It Comes to Home Financing
When it comes to home financing, there are solutions for borrowers in all types of financial situations and for homes in a wide range of price ranges. Jumbo loans are one such mortgage option for clients who seek to purchase high-priced homes in the area. The Primex Mortgage Corporation professionals work with qualified lenders and can offer highly competitive rates for jumbo loans in Rockville, Bethesda, Gaithersburg, and nearby Maryland. To learn more about these high-value loans, contact Primex Mortgage Corporation and schedule a consultation today.
An Introduction to Jumbo Loans
Jumbo loans are a type of conventional home financing; that is, they are not sponsored or insured in any way through the federal government. They are fully funded and insured through private lenders, while nonconventional loans are insured through a government agency like the Federal Housing Administration (FHA). Conventional financing traditionally has more stringent approval requirements than nonconventional mortgages, but have very competitive rates and great terms.
Conventional loans are further classified into nonconforming and conforming loans. Jumbo loans are considered nonconforming because they don’t “conform” to limits set by government-sponsored entities Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac repurchase mortgages in bulk. In Montgomery County, where Primex Mortgage Corporation operates, that limit is $636,150. If you want to purchase a home that exceeds that limit in Rockville, Bethesda, or Gaithersburg, you’ll need a jumbo loan.
Jumbo Loan Requirements
To get approved for a jumbo loan, you’ll need to be in good financial standing. Well-qualified borrowers typically have a credit score of 700 or higher and have a low debt-to-income ratio (40% or less is a good benchmark, although every loan is different). Because we work with top lenders, we can offer financing for high-priced homes even without a large down payment requirement. The lower the down payment you want, the better your credit and financial standing should be.
For a jumbo loan, you’ll need to prepare not only for your monthly mortgage payment, but also to pay for monthly private mortgage insurance, which is required usually until you have paid off 30% of your loan. Many clients choose jumbo mortgages with adjustable rates (ARMs), which have low interest rates up front that increase with time. Many of our jumbo loan clients secure jumbo loans with the intention of refinancing after building some equity, then refinance to fixed-rate mortgages.
Start the Process Today
When you’re ready to learn more about jumbo loans and finding the right financing for your goals as a homeowner, contact us. The Primex Mortgage Corporation professionals are well-versed in home financing for high-priced homes, and we’re here to help you. If you are looking to purchase in Rockville, Bethesda, Gaithersburg, or nearby Maryland, contact us to get started.