Jumbo mortgages almost completely disappeared during the mortgage meltdown. They’re available again in today’s mortgage market but lenders are taking a more cautious approach.
Jumbo mortgages are home loans that exceed conforming loan limits, which are currently $417,000 in most parts of the United States and $625,500 in certain high cost areas.
If you’re in the market for a jumbo mortgage, be aware that qualification requirements have become more stringent. While every lender has different requirements, a credit score of 720 or higher will more than likely be required. You’ll need to prove at least a two year work history and in addition to your down payment and closing costs, most lenders will require that you have 6 to 12 months of cash reserves that could cover the total principal, interest, taxes and insurance of your jumbo mortgage.
If you have a low debt-to-income ratio, a high credit score, and a large down payment, a jumbo loan might be right for you!
