A jumbo loan is, essentially, another name for a non-conforming mortgage, which are loans that do not conform to requirements set by major mortgage loan companies Freddie Mac and Fannie Mae. Jumbo loans usually require a higher down payment than conventional loans.
These loans exceed loan limits set by the government, and if you are purchasing a property that calls for a loan higher than the local limit, this is the only time you would need to consider taking out a jumbo loan for a home in Scottsdale. When a loan amount exceeds the acceptable limit to be considered as ‘conforming’ to Fannie Mae and Freddie Mac guidelines, it is considered a Jumbo Loan.
Qualifying for a jumbo loan is very similar to qualifying for a conforming loan. Lenders take monthly income, monthly expenses, excess cash, and credit scores into account when deciding if a borrower qualifies.
Generally if your credit score sits at 700 or higher and you have 6 to 12 months in reserve, you will fit the requirements to qualify for a jumbo loan. For individuals looking to take out a jumbo loan, proof of a substantial income will also be necessary.
For real estate in more expensive homes in Scottsdale, taking out a jumbo loan will assist in paying for these pricier properties. These loans also allow for more flexible loan terms, allowing the borrower to adjust the amount of time on the fixed-rate loan or change the mortgage to be adjustable rate.
One thing to keep in mind: these loans will naturally come with higher interest rates. Unlike safe conforming loans, jumbo loans come with some risks. To qualify, a good credit history is essential, so double check all credit reports for any potential inaccuracies. In general, being accepted for a jumbo loan is difficult, so you must also be able to prove that your income is high enough to be able to afford monthly mortgage payments.
It is also recommended to avoid investing in any other properties in Scottsdale if you have any lingering debt — be it from remaining college loans or medical bills — or you can anticipate a large expense coming quickly. Lenders want to know that you have the funds to pay off the loan and that you will continue to do so for the years on the loan.
Feel free to Contact Wohland Mortgage Team today for any inquiries about jumbo loans!
Sean Wohland and Daydra Crampton were absolutely excellent to work with! They managed to get us to close within a month. Both Sean and Daydra were incredibly attentive and quick. If they get to read this, thank you so much!!Mr. Eischens
Sean is the best. Staff is excellent and personable. No issues.Ms. Thalasitis
Sean and Daydra made our process extremely easy and seamless. We appreciate all of their help and efforts! Thank you!Eade Family
Sean and his team were fantastic! The process was easy, quick, and smooth. I’ll continue recommending Sean to all our family and friends. Daydra took great care of us as we submitted paperwork and asked questions. She responded quickly and you could tell she really cared about us through the process. Sean and his team did a great job! The process was smooth, easy, and fast. I’d recommend this team to anyone looking to purchase or refinance a home. Thanks Sean and Daydra!!!Cash Family
You are the best, and have set the highest customer service bar in the industry. I love it!!! Thanks to you and your whole team!King Family
I just wanted to take a minute to compliment your team. Andrea is always very pleasant and helpful when I call. Daydra is also very nice and has gone above and beyond with after hours follow up. It’s nice to find a business that stills goes the extra mile for their clients and associates.Mr. Chappel
Extremely pleased with the overall professionalism and experience of the loan process. I am now a raving fan of Sean, his team members and Home Point Financial. 2 Thumbs Up!!Mr. Romaguera
This process has been amazing. I was nervous because they switched to me after working with another agent and lenders don’t always take care of the new guys. You guys have been great though. I really appreciate it and I’m very impressed.Kara Gaut
Sean was always available to answer questions or concerns we had. Another “great help” was Alexa Johnson, loan assistant to Sean. This young lady was incredible in keeping us posted and moving the loan rapidly along. She was the most help of all. I would recommend these two to others. The greatest help was Alexa Johnson, in California. Alexa was the hub of the wheel and we cannot say enough about how helpful she was. This loan closed early, because in great part to Alexa. She kept things moving forward and got my concerns or questions answered quickly. This experience, by far, was the best, most convenient and quickest of all the times we’ve financed a home. I would highly recommend Home Point. Particularly, Sean Wohland.Hunt Family
This is about the sixth or seventh loan Sean has done for me personally. He is very professional and I completely trust his advice and expertise. Since I am a Realtor as well, I also highly recommend him to my clients. Sean and his team are great and I am completely satisfied with my experience!McElmell Family