Loans that exceed a particular loan limit are considered jumbo loans. Jumbo loans are also referred to as non-conforming loans. Loan limits are set by Fannie Mae and Freddie Mac, the two publicly chartered corporations that buy mortgage loans from lenders. While the loan limit changes annually, for most areas in the U.S. the current conforming loan limit for a single-family home is $417,000. First Liberty Financial has helped many buyers throughout the Birmingham, Alabama area to obtain a jumbo mortgage.
In order to qualify for a jumbo mortgage, the buyer must meet stricter requirements that those for needed for standard conforming loans. Jumbo loans typically require:
- Lower debt to income ratio
- Higher credit scores
- Larger down payment
- Higher reserves or emergency funds
A jumbo mortgage is a good option for buyers who are able to afford a more expensive home, but haven't saved up enough money to bring the loan down to conforming limits. Also, for buyers who anticipate increased income over time, jumbo loans can help circumvent the "starter home" step. Being able to purchase their ideal home right away allows families to avoid moving at a later date.
First Liberty assists many different types of buyers to secure jumbo loans. Our clients represent a wide range of individuals with specific goals, needs, and resources. If you'd like to discuss whether a jumbo mortgage might be an option to meet your mortgage needs, contact us today.