A Jumbo or non-conforming loan is required for financing on a mortgage that is higher than the conforming ($417,000) loan limits set by Fannie Mae and Freddie Mac.

Qualifying For A Jumbo Mortgage:

Whether you’re qualifying for a $500,000 mortgage, or a $5 million mortgage, there is obviously going to be sizable monthly mortgage payment that the lender will want to be sure you can afford over a long period of time.

It is important to be thorough in explaining what you do for a living, the health of the industry and the likelihood of continued employment

A company web site, business licenses (self-employed) and other relevant information are important things to include with a loan application

Some lenders may even search for your name and company on Google, so it’s smart to have an idea of what type of results and impression they’ll find if they choose to do a little extra digging

Documentation of assets is critical and they have to make sense in relation to the income stated on the application.

For example, if the borrower state and income of $50,000 a month, then there should be sufficient assets and investments to back it up.  If there are any large deposits, other than payroll deposits, expenditures or deductions from checking accounts, make sure to have a paper-trail and a letter of explanation that clearly details the nature of the transactions

Credit Score
In addition to having a high score of  700 or better  and proof of a responsible borrowing history, lenders may also look for other sizeable debts that the borrower has had a positive experience managing or paying off.  Public records and IRS issues will need to be thoroughly documented or explained.

The landscape has changed for appraisals, so don’t be surprised if multiple appraisals are required for financing approval on the property.

Basically, the overall borrower profile and supporting qualifying documentation has to make sense to a lender.  Especially pertaining to the high net-worth world, the borrower’s lifestyle, assets, credit history and income potential should follow a similar pattern of others who take on the liability of large mortgage debts.

The Jumbo and Super-Jumbo mortgage financing industry is always in a state of flux as the supply and demand for these particular loan products can change due to the outside market conditions.

A good rule-of-thumb to remember when trying to qualify for a non-conforming loan is to have your paperwork organized, as well as a good explanation prepared for anything that may raise potential questions by a lender about your ability to repay the mortgage over the term of the loan.

Frequently Asked Questions:

Q:  Why are rates higher with Jumbo Mortgages?
The rates are typically higher with Jumbo Mortgages due to the risk associated with financing a larger property that may be more difficult to sell and recoup losses in the case of a default.  However, in today’s market Jumbo Fixed Rates have been lower than the conventional conforming loans.

Q:  What are the down payment requirements for Jumbo Mortgages?
Typically, down payments for non-conforming loan amounts can be 20% or higher of the purchase price.

Q:  Do I have to pay Private Mortgage Insurance on a Jumbo Mortgage?
Private Mortgage Insurance (PMI) is only required if the loan to value (LTV) is greater than 20%


Ashley Austin Anderson
NMLS# 217467
Loan Officer





Powered By: Benchmark Mortgage
Ark-La-Tex Financial Services, LLC/ NMLS# 2143

United Lending | Ranked the #3 Mortgage Lender by Austin Business Journal 2010, 2011, 2012 & #2 in 2013 | Ranked #4 Top Workplaces in Austin 2013

3429 Executive Center Drive #200
Austin, TX 78731
Cell: 512-413-1332
Office: 512-592-5400
Fax: 512-646-7333
Email: ashley.anderson@ulmtg.com
Website: www.ashleyaustinanderson.com

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The data relating to real estate for sale on this web site comes in part from the Austin/Central Texas Realty Information Service (ACTRIS).


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