Onward and Upward - with a Jumbo Loan!
What is a Jumbo loan?
The Federal Housing Finance Agency (FHFA) sets a limit on the dollar amount a conventional loan must conform to. If a loan amount exceeds this limit – currently $726,200 for a single-family home and $1,089,300 in designated high-cost areas – then it is considered a Jumbo loan.
With the rising costs of homes across America, even some moderate homes are exceeding the conforming limits. MiMutual Mortgage offers 9 different Jumbo Loan Programs to meet a variety of financial situations. These loans can be used to purchase or refinance primary residences, second homes and investment properties.
Want to know the conforming limits in your area? Click the link below:
Qualifying for a jumbo loan
At MiMutual Mortgage, we accept minimum credit scores from 660-740. The exact credit score needed for you to qualify will depend on other factors, such as down payment amount, income, assets, loan term and loan amount.
In general, lenders look for a good credit score, a low debt-to income (DTI) ratio and good cash reserves.
The DTI is a measurement of your debt (credit cards, student loans, car payments, etc.) divided by your monthly earnings. This percentage is your DTI and helps determine what monthly mortgage payment your budget can handle.
At MiMutual, we accept DTI ratios at no greater than 43% – 49%, Cash reserve requirements vary based on the specific Jumbo program used and risks assessment. The riskier the loan feature or borrower’s financial situation, the more cash reserves will be required.
Your actual parameters will vary based on income, assets, and credit worthiness, so contact your MiMutual Mortgage Loan Officer for an assessment.
No! Conventional loans with less than 20% down payment will require PMI. A Jumbo loan is a non-conforming loan (meaning it exceeds the FHFA loan limits) so PMI is not required. MiMutual Mortgage offers Jumbo Loan programs that allow as little as 10% down payment and NO PMI.
Traditionally, Jumbo loans tended to have higher interest rates than standard loans. However, with the rise in home values across the country, more lenders are offering Jumbo loans. Current market data shows the interest rates for Jumbo loans to be very competitive with conforming loans. Ultimately, your interest rate is depended on the current market and your overall financial picture.
For more information on current rates and what you may qualify for, contact your MiMutual Loan Officer.
Yes! With the surge in home values over the last couple of years, many people opt to take advantage of their home’s equity with a Cash-Out Refinance Loan. This gives you cash in hand to pay off high interest debt, fund a large purchase, invest in a second home, or use as savings. How you use the cash is up to you!
You may also want to refinance a Jumbo loan into a conventional loan. Once the total loan amount falls under the conforming loan limit (currently $726,200) this may be an option to get your more favorable terms.
You are about to begin the mortgage loan application
- Applying on the MiMutual Mortgage Online Loan Application is quick, easy, and secure! The loan application will take about 25 minutes to complete.
- Once your application is submitted, you can log back into the MiMutual Mortgage Online Loan Application to securely upload requested documents, view your loan status, and communicate with your mortgage team.
- If you have questions, reach out to your MiMutual Mortgage Loan Officer.
Your guided mortgage journey starts here!Start Application