Jumbo Loans
Make Your Dream Home a Reality
Jumbo loans are non-conforming mortgages that exceed conventional loan limits set by the FHFA and are used to finance high-value properties. Due to their size, they require larger down payments and have stricter credit requirements.
Jumbo Loan Requirements
1.
High Credit Score
Borrowers typically need a strong credit score of 700+ to qualify for a jumbo loan, reflecting the increased risk associated with larger loan amounts.
2.
Large Down Payment
Jumbo loans require a significant down payment, often at least 10-20% of the home’s purchase price.
3.
Low Debt-to-Income Ratio
Lenders prefer borrowers to have a low DTI ratio, typically around 43% or lower.
4.
Collateral
HELOC loans are secured by the borrower’s home, which means that if the borrower defaults on the loan, the lender can foreclose on the home to recoup their losses.
Jumbo Loan Benefits
Flexible Borrowing
Similar to a credit card, a HELOC provides a revolving credit line that allows you to borrow and repay funds as needed during the draw period. This flexibility makes it ideal for ongoing or unexpected expenses.
Potential Tax Deductibility
Interest paid on a HELOC may be tax-deductible if the funds are used for home improvements or other qualifying expenses. This can provide significant tax benefits.
Lower Interest Rates
Because a HELOC is secured by your home, it typically offers lower interest rates compared to unsecured credit options like personal loans or credit cards.
