Jumbo & Super Jumbo Loans Are Back! What Are They & Who Qualifies?

September 1, 2021

After a long lending squeeze brought on by the Covid-19 pandemic, we are now seeing more lending options come back to the market. One of those options lenders are proud to reintroduce are the Jumbo and Super Jumbo loans. Jumbo and Super Jumbo Loans give borrowers access to higher valued properties previously locked up in the market. For those who aren’t familiar with this type of loan or who just need a refresher, we’ve put together some basic info to help borrowers decide if this is the right choice for their financial future.

What is a Jumbo Loan?

Jumbo loans are any loans that exceed the conforming loan limit set by the federal government. These loans are for those seeking financing for more expensive properties and backed by lenders willing to take on more risk since they will typically have to hold the loan for a more extended period of time.

Jumbo loans typically cost borrowers more than a conventional mortgage and the requirements are stricter. Borrowers will need to have higher credit scores and more equity than with conventional loans. Even though interest rates are low all around, jumbo loans will still be higher than a traditional loan.

Why go Jumbo?

Jumbo and Super Jumbo Loans offer borrowers more flexibility with fewer restrictions. They can use them to finance their primary residence, vacation properties, or consolidate loans on multiple mortgages. For those who qualify, jumbo loans give borrowers enormous buying power to secure the home of their dreams.

Who qualifies?

Due to the restrictions on these loans, not everyone can get one. To start, borrowers will need two years of income documentation. Other guidelines include:

  • Eligible credit scores as low as 700
  • Debt to Income Ratio up to 50%
  • Fixed Rates and ARM Products are available
  • No limit on the number of properties owned when subject is a primary residence

FSB Mortgage offers delayed financing options and borrowers can use restricted stock income. They can also receive cash out of the loan up to the lending limits and there are no LTV differences between Jumbo and Super Jumbo loans. Be sure to also ask about their combination HELOC that will give your borrowers even more buying power!

Jumbo loans are not for everyone, but they give eligible borrowers an excellent opportunity to make a substantial housing investment. With the rates as low as they are, there has never been a better time for your Jumbo borrowers to take action.

Contact a member of our team and ask for more information regarding our Jumbo Loans and other products that will give your borrowers the buying power they need to make their dreams a reality!