Ready to buy that luxury home you’ve been eyeing, but not sure you want to tie up your liquid funds? With promising mortgage interest rates where they are, financing the home might be a better alternative, allowing you to invest your cash to receive a higher return.
When it comes to borrowing money to pay for luxury real estate, your options are slightly different than they are for a non-luxury home.
Conventional mortgages and government-insured loans like FHA, VA, and USDA, also known as conforming loans because they follow lending standards set by the Federal Housing Finance Agency (FHFA) are designed for smaller to mid-sized homes. In 2022, the conventional loan limit for a single-family home is $647,200 – which is nearly $100,000 more than the 2021 cap. But what if your luxury home has a much higher price tag? That’s when a jumbo mortgage loan may be your best solution.
What is a Jumbo Loan?
Any home loan above $647,200 is considered a jumbo loan in Texas. Jumbo loans, also called non-confirming conventional loans, are mortgage products used to purchase high-price homes exceeding the standard amount.
Because Jumbo loans are not a conforming loan, they have their own set of rules.
Jumbo Loan Requirements
Proof of income with two years of tax documentation, consistent income source, enough liquid assets to cover six months of mortgage payments.
A high credit score above 700.
A debt-to-income ratio no more than 36% to 43%.
Benefits of a Jumbo Loan with First United Mortgage Group
Whether you want to purchase a primary luxury residence or a second luxury home in the Greater Dallas-Fort Worth area, when you work with First United Mortgage Group for your jumbo mortgage, you can expect:
Low-interest rates with attractive terms.
Faster loan approval – all from in-house.
Exceptional service from members of your own community.
Fixed and adjustable rates are available.
Asset depletion and restricted stock can be used as qualifying income.
Allows the use of business funds for closing.
Let us help you buy that home you’ve been dreaming of. Our licensed loan officers can help you start the pre-qualification process – the first step in getting the best mortgage loan for your needs. Give us a call today at (972) 591-3097 to get started.