There is a lot of good news as it relates to buyers who are looking into financing a mortgage with jumbo loan terms. So what exactly is a jumbo loan? This is a loan in excess of FNMA/Freddie Mac’s loan limits. In the Carolinas, this is any loan over $417,000. This limit has not changed in the past few years. A few years back, jumbo loans were less available than they are today.
The rates/terms for jumbo financing have gotten considerably better over the last few years. In fact, many times they are the same or better than a typical loan program.
There are also more lenders offering these loan programs, so there are more choices and more options for financing.
The issue we hear about most is the amount of documentation required for these loans. It’s the same amount as a typical mortgage loan program today. The difference is most jumbo buyers are typically move-up buyers, many of whom have not obtained financing since 2007-2008. This was before the housing crisis and before the requirements for documentation were so onerous.
Many buyers feel as if lenders are being invasive and that it has become much more personal. They’re right; it has. But the requirements aren’t personal; they apply across the board to all applicants. There was a great article in Forbes a few years back that provides great third party insight as to why lenders need so much information.
Many times, borrowers want to substitute what they believe the lender is looking for, but you can’t. The lender has put conditions on their loan approval for a reason. It is best to get them what they are looking for and not create any other questions. This way, your loan approval and subsequent closing will go much more quickly.
Allen Tate Mortgage offers a variety of competitive jumbo loan program options for you to consider. Talk with your Allen Tate Mortgage Consultant for more information.
Allen Tate Mortgage NMLS# 79543
Loans available in NC/SC