Jumbo Loans Philadelphia

Buying a new home can be one of the most exciting and challenging processes of your life. Before you consider getting that house of your dreams, you must consider your finances. Sometimes, you simply need more money. If you are hoping to purchase an expensive home, conventional loans may be insufficient. So-called conforming loans are mortgages that conform to limits established by the Federal Housing Finance Agency (FHFA). These loans also meet the guidelines of Fannie Mae and Freddie Mac.

Jumbo loans, however, are different. These loans are non-conforming and are not restricted by certain financing limits. If you need an unconventional mortgage, a jumbo loan may be right for you.

Jumbo Mortgage Rates Philadelphia Needs

In most counties, a conforming loan peaks at $484,350. Fortunately, jumbo loans can help buyers exceed these limits. Before applying for a jumbo loan, buyers should be cautious. Jumbo loans are riskier because they are not established by the FHFA. For this reason, some brokers will not offer jumbo loans.

If you want a jumbo loan, you need to find a broker who can find the lender right for you.

The Jumbo Loans Philadelphia Can Offer

Jumbo loans are special for several reasons. If you, the borrower, default, the lender will have to take losses. Moreover, interest rates for jumbo loans vary. You can get either a fixed or an adjustable rate for your jumbo loan. You should consider the criteria before applying.

Although the requirements could differ, traditionally you should:

  • Have a credit score above 700
  • Have a debt-to-income ratio (DTI) below 45%
  • Have cash reserves to ensure the lender that you are trustworthy
  • Provide documents proving you are financially stable. These may include W-2s and / or 1099s.
  • Consider having your home reappraised

A top jumbo loans companies in Philadelphia, or at least the one that has enough experience and expertise can help. It is important that you understand the disadvantages of jumbo loans too. You will usually have to make a higher down payment. Your end costs and fees may also be higher, and you may have higher interest rates as well.

In some areas of the country, you don’t need jumbo loans. Some wealthy counties allow you to use normal loans for pricey properties. It all depends on your property location. Call Latitude Financial for help today.