“Everyone I spoke with at SouthStar was very helpful and willing to assist me! I had talked to a couple other banks and not received a good response, so calling SouthStar was such a relief. They were super responsive in getting me an account set up and helping me with a loan. Would definitely recommend using SouthStar!” ~ Kristi H.
Big Financing For Big Homes.
Will your dream home cost more than $548,250? Jumbo loans give you the financing you need to transform your dreams into reality. SouthStar bank will help you qualify, and ensure you get the most favorable rates and terms for your financial situation.
Why Choose A Jumbo Loan?
- Finance the luxury property of your choice.
- Choose between a variety of mortgage terms.
- No Fannie Mae or Freddie Mac restrictions.
- Enjoy tax breaks on up to $750,000 of mortgage debt.
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Credit Score, Cash Flow, DTI and Other Financial Requirements for Jumbo Loans
Most jumbo mortgages have standard options like 30-year fixed-rate mortgages, Adjustable Rate Mortgages (ARM) and in some cases Interest Only options. More specifically, your credit score must be above average, and your DTI (debt to income ratio) must be no higher than 43%.
If you’re self-employed, there are additional financial requirements. Since you won’t have any W-2s, self-employed borrowers are required to produce two years of tax returns and at least sixty days of bank statements.
To prove sustainable cash flow, the buyer must possess liquid assets and in many cases six months’ worth of cash reserves that equal the mortgage payment.
Because jumbo loans occupy more of a niche market than traditional home loans, they have unique regulations and tax implications. Also, because these mortgages are considered higher risk, they have more rigorous underwriting procedures.
However, because they offer higher risk, jumbo loans can potentially offer higher benefits. For example, since lenders have more to gain from these loans, they can also afford more services to ensure the buyer’s financial safety. Another benefit is that you aren’t restricted by Fannie Mae or Freddie Mac.
Jumbo Mortgages: The Right Move if You’re in the Right Position
If you’re considering a jumbo loan, it’s important to remember that it is a major investment. As with any investment, there are risks to understand and evaluate in relation to your goals. Choosing to buy a house is a bold move.
What will aid you throughout your home search is learning how to eliminate unnecessary risk. That’s where mortgage brokers, real estate agents, and lenders can help you. Real estate agents, for example, can help you avoid property pitfalls. The right mortgage brokers and lenders will aid in reviewing your financial situation and connecting you with the right loan.
The bottom line is that buying a house is a major life decision. Many of our clients come to us with a conflicted outlook – excitement about a new chapter, but also worry and apprehension. Our lenders understand the loan process and work to make it as straightforward as possible. SouthStar Bank’s flexible common-sense lenders are here to help turn your dream home into reality.
Choosing Who You Borrow From Is Key
Not all borrowers are the same. A thorough evaluation of your goals and financial situation will ultimately lead to more favorable results. Quality lenders and mortgage bankers are not only versed in their knowledge but their overall practice of that knowledge. They can understand exactly what you are looking for and put you in the correct position according to your needs. What’s more, good mortgage lenders understand the importance of trust, and never take that trust for granted.