Neighborhood Mortgage: When a Conventional Loan Will Not Do, Apply for a Jumbo Loan in Alpharetta, GA
Alpharetta, United States - January 15, 2024 / D.J. Fuchs - Neighborhood Mortgage, Inc. /
You can purchase some houses with a conventional loan, but if the home you have your eye on has a higher purchase price than most, you will need a jumbo loan in Alpharetta, GA. Although it can be harder to obtain a jumbo loan, it is not impossible because you have DJ Fuchs at Neighborhood Mortgage.
The Jumbo Loan Explained
A jumbo loan is a loan that is bigger than a conventional loan. The Federal Housing and Finance Agency, or FHFA, sets the loan limits for conforming loans each year. A conforming loan is a type of loan that follows the criteria that Fannie Mae and Freddie Mac set for loans. These agencies are government-sponsored enterprises or GSEs that guarantee mortgage loans. Since jumbo loans do not follow the criteria set by these agencies, they are known as “non-conforming” loans.
What Are the Limits for Jumbo Loans?
You must obtain a jumbo loan if you want to purchase a house that requires more than the loan limit that the FHA set in your location. Because it is a non-conforming loan, Fannie Mae and Freddie Mac do not back these loans, so jumbo loans are riskier than conventional loans.
The conforming loan limit for the contiguous states is going to be $766,550 for the year 2024. It may be as high as $1,149,825 for locations with significantly higher home prices and houses in Alaska and Hawaii.
What Are the Qualifications for a Jumbo Loan?
The guidelines for non-conforming loans will be stricter in most cases. In particular, there are three very high hurdles that you must jump over before you can qualify for a jumbo loan, and they include the following:
The Down Payment
You must offer a larger down payment than you would be required to make for a conventional loan. In most cases, you must have a down payment of 10% to 20%, but some lenders require even larger down payments.
If you cannot offer a down payment of at least 10%, the lender will charge you a higher interest rate. You can demonstrate to your lender that you have enough liquid assets to cover your monthly mortgage payments for at least six months to one year.
The Credit Score
You will also need a higher credit score to qualify for a jumbo loan. In most cases, this will mean you must have at least a 700 credit score.
The Income Requirements
If your income is particularly large, this will help you qualify for a jumbo loan. If the amount of money that you pay each month for debts or your debt-to-income ratio is low, this will look very good to your lender. However, if your monthly expenses equal one-third of your monthly income, you must have a significant amount of money in reserves or a very high credit score.
Neighborhood Mortgage: Receive the Right Loan for Your Needs
Finding a jumbo mortgage loan in Alpharetta, GA, can be challenging, but we have what you need with DJ Fuchs at Neighborhood Mortgage. You can quickly get started on an application by registering for an account on our website so that we can begin working toward making your dreams come true. Contact us today.
Contact Information:
D.J. Fuchs - Neighborhood Mortgage, Inc.
1835 Lockeway Dr #306
Alpharetta, GA 30004
United States
Contact DJ Fuchs - NMLS: 2235402
(678) 414-8741
https://www.dj-mortgage.com/
