Flexibility in Jumbo Lending When Buying a Home

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Filed under: Jumbo Loans

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Understanding your financing options can help you get into the home of your dreams. If you are preparing to buy a home, then the first thing that you need to do is talk to an experienced lender to find out about your mortgage options. Homeowners often assume that they need to go with a traditional loan, but you shouldn’t overlook the benefits of alternate options.

Jumbo Loans: What Are They?

If you find a home that is priced higher than what a conventional loan will cover, then you might look at jumbo loan options. The threshold changes in each county, so the numbers will vary depending on where you live.

Fannie Mae and Freddie Mac offer conventional lending, but there are times when a homeowner is interested in a property that is more expensive than what these conventional loans will cover. In Riverside County here in Temecula, the conventional loans run out at $424,100. There are other areas that are significantly higher than that, and these loans might cover up to $600,000. After this threshold, jumbo loans will kick in.

Do You Need 20% Down?

When you choose a jumbo loan option, is it necessary to pay 20% down? Most homeowners assume that they need to have a significant down payment to afford homes in these higher price ranges. It is ideal to have a large down payment, but it certainly is not necessary. There are many programs that you might consider that allow you to have a significantly smaller down payment.

With jumbo lending, you generally need about 5% down for the home purchase. For example, you can buy houses up to a million dollars with a down payment of just 5%. Even if you experienced a foreclosure, short sale, or bankruptcy in the most recent financial crisis, there are still jumbo lending options available for your family.

Even for foreclosures that happened as recently as 2 – 5 years ago, there are still jumbo lenders that will work with that situation. In these circumstances, it might be necessary to put a little more down, such as 10%.

There are Many Possibilities for Lending

Don’t assume that you won’t be able to buy a home if you went through a hard time financially. There are many lending opportunities, and we would love to help you find a loan that matches your needs.

Do you need help with a jumbo loan or a conventional solution? Franklin Loan Center is here to help. Contact us to learn more about the best mortgage solutions to match your financial situation.

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