Those who qualify for jumbo loans are those who exhibit a flawless credit report and high income. Usually, a lender will require at least 20-40% as a down payment on the home.
Qualifications for Jumbo Loans are as follows:
Keep in mind, not all properties will be able to qualify for this program. Some lenders will not even offer a jumbo loan rate for vacation or investment properties because of personal risk. Because of new laws passed in 2014, not all jumbo loans can qualify. These include interest only and balloon payment loans. These loans are much harder to find these days since the passing of the 2014 law from the Obama Administration. These laws protect the lender from any default on the home.
Some jumbo mortgage and refinance rates are called super jumbo mortgages which means they are anywhere from $650,000 to $20 million or more. There is also a relatively new loan called a conforming jumbo loan, referring to loans which are between $417,001 and $625,500 for a conventional loan or $417,001 and $729,750 for an FHA loan.
A homeowner can consolidate their payments into one monthly payment. Instead of having two loan payments to remember to make, the home buyer can avoid the cost of private mortgage insurance with a single and affordable mortgage payment.