What’s a jumbo mortgage loan?
Jumbo mortgages are home loans that exceed conforming loan limits. A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio and a higher credit score, a jumbo loan may be right for you. The limit on conforming loans is $510,400 in Utah, but jumbo mortgages can exceed these limits. Even so, if you’re considering a home in a high-cost area, you may still be able to obtain a conforming fixed-rate mortgage or adjustable-rate mortgage for up to $636,150. FHA loans have limits up to $721,050. Contact a mortgage loan officer to learn more.Benefits and considerations
Higher purchase limits Jumbo mortgages can exceed the conforming loan limit, currently $510,400 in most parts of the United States. Competitive rates Jumbo loan rates have reached historic lows in recent years, and the interest on loans up to $1 million may be tax-deductible.Footnote1Requirements and qualifications
- Credit history – Conventional loans are a good choice for borrowers with very good credit, which generally means a FICO score of 740 or higher. There are also established guidelines for income and other personal financial information.
- Financial strength – When applying for a jumbo mortgage, the maximum debt-to-income ratio for jumbo loans is 45 percent.
- Property appraisal – The property appraisal must support the purchase price for the home and the mortgage the borrower wants.