Super Jumbo Loans

Are you an investor looking to purchase a home but need more funds than your traditional bank will cover? Or maybe you are considering a luxury home for purchase? A super jumbo loan might be the right option for you.

A super jumbo loan is a type of loan used to purchase a property when the limits of government-backed loans aren’t enough to cover the cost. There is a limit on mortgages which is set by Fannie Mae and Freddie Mac, when those limits are exceeded, you will find yourself in need of a jumbo loan. These are called non-conforming loans and the maximum varies by lender, so it is important to weigh out your options and talk to different lenders. A super jumbo loan is a residential mortgage for more than $650,000 typically although depending on the lender the amount may differ. The least amount that qualifies as a super jumbo loan is around $500,000 but this can also vary depending on lender and location.

Qualification Process 

When it comes to a super jumbo loan, your finances will be incredibly important. The reason these loans have more guidelines is that they involve more risk than a government-backed loan. Although they do have more to gain since the loan itself is higher and can be more profitable to the lender. These loans are often difficult to understand when it comes to the underwriting details so they are not particularly popular.

In order to qualify for a jumbo loan, you will need to have a large income, high credit score, and a generous down payment and savings. You’ll need to be able to prove you have enough money to pay off the monthly payments for the first 6-12 months when applying for a jumbo loan as well. If you do not meet those requirements, you can always discuss your options and the specific situation with a lender directly as having a low debt to income ratio can outweigh or lower credit score.

Should I Apply?

The best way to find out if a jumbo loan is the right choice for you is to discuss your options with a lender, or possibly more than one. If you are in a situation that a loan backed by Fannie and Freddie are outside of the terms that you need for your purchase, this may be the best option for you. These loans are usually used when you want to buy a luxury property and this means you will have to have multiple inspections done to make sure the house is actually at the value to qualify for a super jumbo loan. Many that are cash flow heavy are prime candidates for super jumbo loans as private lenders have more flexible lending options than a traditional bank or lender.

Reach Out Today!

If you think a super jumbo loan is a good idea for your purchase, make sure to review your finances and weigh out all your options. We want to make sure you are making the best decision for your next purchase, so please reach out to KC Investor Funding today!

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