Trying to find a jumbo lender serving the Dallas TX community isn’t an easy chore, especially if you are browsing the housing market in search of a dream home with very specific details you hope to find in the home. If sprawling square footage is high on the list, you might be needing a loan that precisely matches the price tag attached to your dream home.
This is when a larger than usual type of loan is the answer to all your economic questions.
The Specifics of a Jumbo Loan in Dallas
As its name implies, this type of mortgage is a much larger than any conventional loan. This increased size is designed to fit the specific financial needs of a homebuyer purchasing a particularly expensive property.
How expensive does a property have to be to apply for a non-conforming loan?
When we refer to “more expensive” properties, there are specific figures that qualify. In most of the US that figure is $424,100. This will be the starting cost in the vast majority of locations. Properties that have a starting price below this figure will will fall into the category addressed by a conventional loan.
In regions where property is especially pricey such as the west coast for instance, the minimum price for this type of loan is $636,150.
The obvious benefit of obtaining a jumbo mortgage loan is that it makes buying one of these finer homes more accessible. Rather than saving up the enormous sum of money, taking out multiple loans , selling off valuable belongings or sacrificing accounts dedicated to other purposes, the jumbo loan can be used to finance the entire cost of the home.
If you are considering purchasing a luxury home or high end property, you should see if you qualify for the super jumbo mortgage which addresses the costs of such luxury.
A super jumbo loan is typically reserved for properties costing more than $650,000, nevertheless there is no specified minimum because there is no organization presiding over this type of loan. In other words the limits and definition of this loan will be established by the lender making the deal.
Non-Conforming Loan Requirements
Homebuyers whose incomes can support the demands of a higher mortgages can take advantage of some specific advantages. nevertheless it will be important to consider the specific requirements for obtaining this mortgage.
As you can imagine, the stipulations for being eligible for these types of mortgage products are far more stringent than those that would allow you to take out a conventional loan. This is due to the risk factor involved with providing financing for a high-end estate.
As with any other loan, you will need to prove that you income will cover the monthly payments needed to fully pay back the loan. Furthermore you will need a DTI (debt to income) of around 38% or lower. You will find that different lenders set different DTI maximums, but the one quality they all sare is how carefully the scrutinize your DTI when considering financing.
You will also need to have a fairly high credit score to be eligible for jumbo financing. There are not many lender who will finance these loans to a person with a average credit history. While different lenders have different requirements, you will find that a credit score of 680 or higher is needed for most jumbo lending.
Down payment is another thing to consider when considering to go this route. The exact amount will be decided by the full price. Many lenders ask for 5% down on house in the vicinity of 400 thousand. If the house you have you eyes on is going to cost more than $1M, you can expect to put at least 10%, and 20% if you will shotting for the multi-millions.
Most lenders will also consider liquid assets as long as you can provide proper documentation for them. You will then need to handle the closing costs, down payment and the subsequent monthly payments. In the same way as conventional loans you can expect different lenders to make different deals regarding their reserve policies. For instance, one lender might only ask for six months of reserves while another may ask for a full five years. Many of the specifics will also be determined by the size of the loan in question.
Higher interest will be another point to consider. Because of the higher risk factor, interest rates for these loans will be considerably higher than what you would expect for a conforming loan. These risks are compounded by the fact that the market for high-end homes is much smaller. Furthermore, the price of the home could fluctuate considerably in the future. The higher interests rates protect the lender’s investment.
How to Find the Right Jumbo Mortgage Lender Serving the Dallas Area
When you are looking for a lender in Dallas who can offer your a jumbo loan, there will be some specific things to keep in mind. First and foremost you will need a lender who can offer you a suitable interest rate that works for your budget plan.
You will also want to research the requirements of various lenders to make sure you qualify for the jumbo loan. Rather than going all the way to the lender’s office to find out you don’t qualify. Save some time by looking online at the requirements posted on many lender’s websites. This will help you narrow down your list of lenders to a specific few.
It would also be a good idea to make sure the lenders you will work with have extensive experience in handling jumbo loans. The two most common options are banks and mortgage brokers. There and you can expect different service from either one.
Banks tend to deal with many different loans of varying sizes and will probably rush you through the process without much in the way of personalized attention and guidance through the process. You may feel that this experience will be less educational than that found from private mortgage brokers.
In conclusion, home-buyers looking to obtain an especially costly abode will need a suitably sizable loan to cover the cost. Jumbo Loans can address this need but come with some very specific stipulations and concerns. Finding the best lender to provide you with a jumbo loan will ultimately help you get the most from your experience and set you off to a great start in your new dream house.
Additional Helpful Information
Local communities we service in the Dallas, TX area:
Addison, Arlington, Balch Springs, Bedford, Carrollton, Cedar Hill, Coppell, Dallas, Desoto, Double Oak, Duncanville, Euless, Farmers Branch, Ferris, Flower Mound, Forney, Fort Worth, Garland, Grand Prairie, Grapevine, Heath, Hutchins, Irving, Lancaster, Lewisville, Mansfield, Mesquite, Murphy, Plano, Red Oak, Richardson, Rowlett, Sachse, Seagoville, Southlake, Wilmer, Wylie
Collin County, Dallas County, Denton County, Ellis County, Kaufman County, Rockwall County, Tarrant County
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