Can We Move to The Best Neighborhood We Want With a Jumbo ARM or Jumbo Home Mortgage?

Do you want to buy a home for $1 million or more? In many of our California neighborhoods, this is a starting price. A 30-year jumbo home mortgage or a jumbo ARM (adjustable rate mortgage) can help you finance a home purchase of more than $726,525 in many counties. In other counties with a majority of lower-priced homes, jumbo mortgages are any amount over $484,350. 

What is the difference between a jumbo loan and a conforming loan?

The term “conforming” refers to loan limits set by Fannie Mae and Freddie Mac, the two government-sponsored home loan mortgage purchasing organizations. Fannie and Freddie set limits on mortgages that they’ll purchase from lenders. This is the source of conforming loan limits: $484,350 in lower-priced counties, and $726,525 for higher-priced counties. 

When these two agencies buy a “conforming” mortgage, it reduces risk for the original lender. Qualifying for a conventional “conforming” mortgage can be easier because initial lenders know they can sell the mortgages to Fannie and/or Freddie. This isn’t the case for jumbo “non-conforming” mortgages. In this case, lenders may request more, or alternative documentation. 

What limits are there on jumbo home mortgages?

You can get jumbo mortgages for $1 million, $2 million, $5 million, and even $10 million. There is no technical limit on the amount of a jumbo home mortgage. You can also choose different loan repayment terms. While some jumbo mortgages are 30-year fixed interest rate mortgages, others can have 15-year terms. 

How can we qualify for a fixed rate jumbo mortgage or a jumbo ARM?

Different lenders will request different documentation to qualify you for the jumbo mortgage you need. You have options for using bank statements and alternative forms of income documentation. You may be able to use assets you have in reserve to qualify for a jumbo home loan. You may also use a combination of loan products to achieve your goal of owning the house you desire in the neighborhood you want to live in. Working with an experienced, qualified home mortgage broker will help you see all of your options in jumbo mortgages. You can decide whether you want a 30-year fixed rate jumbo home loan or a 5/1 jumbo ARM, or another mortgage product that meets your needs. 

Sources

http://www.qualifiedmortgage.org/california-jumbo-loan-limits-2019/

https://www.thebalance.com/what-you-need-to-know-about-jumbo-loans-4155160

 

California Platinum Loans

  https://californiaplatinumloans.com

Ever Heard of The Term Flexible Underwriting? How Can You Use It For Jumbo And Super Jumbo Mortgages Up to $10 Million?

Flexible underwriting means exactly what it says. While some standard mortgages come with standard underwriting criteria, and “conforming” mortgages must be under the loan limit set by the Federal Housing Finance Agency (FHFA) and meeting Freddie Mac and Fannie Mae funding criteria, a jumbo home mortgage or super jumbo home loan doesn’t fit in those criteria. Mortgage lenders who make super jumbo home loans of $5 million, $10 million, or $15 million or more establish their own underwriting standards. They can be flexible about who they’ll lend to, how much they’ll lend, and interest rates and terms.

Flexible Underwriting Balances Risk And Opportunity

The purpose of the underwriting process is to assess risk to the lender and evaluate the financial opportunity the loan represents. Super jumbo mortgages of $10 million and above are almost by their nature, one-of-a-kind transactions for any lender.

When you hear the words “flexible underwriting” and you’re in a unique financial circumstance and able to purchase a high-priced elite home or luxury estate, you can be assured that your needs will be considered carefully by lenders.

What Are Some Alternatives to the Conventional Mortgage Underwriting Processes?

You can qualify for alternative mortgage products on high-dollar value home purchases through a variety of means, including:

  • Business income
  • Foreign national homeowners
  • Asset evaluation
  • Investment properties
  • Adjustable Rate and Interest-only mortgages
  • Sub-Prime jumbo loans
  • Flexible down payments
  • New construction loan options

You may want to buy a one-of-a-kind property, and chances are you don’t fit into a “one size fits all” underwriting process meant for moderate-income buyers who want to buy average-priced properties. Flexible underwriting can help you buy the home you want and obtain the mortgage product that’s right for you and your needs. Access flexible underwriting and review a variety of super jumbo home loan programs up to $10 million or even $15 million by working with a qualified and experienced jumbo home mortgage specialist.

Sources

https://www.investopedia.com/terms/u/underwriting-standards.asp

California Platinum Loans

  https://californiaplatinumloans.com

Condo Vs. Townhouse: Get To Know Your Loan Choices and Understand The Different Ways Of Obtaining A Loan Either via VA or FHA Today

You can enjoy “turn-key” living in a condo or, depending on services offered by your HOA, a townhouse. That means you can leave and lock the door and not worry about yard maintenance or, potentially home security. The two types of properties do have differences that can affect your choice of home loans, as well as pricing and overall property cost.

Thinking of buying a Condo or a Townhouse anytime soon? Let us help you determine which property is right for you by getting to know the pros and cons

When you own a townhome, you are usually responsible for maintenance inside your home and outside the home. The biggest difference between a townhome and a condo is that when you own a townhome, you own the land it sits on.

When you own a condominium, you do not own the land that it sits on. It’s obvious this is true for condos that are part of high-rise apartment-style buildings. With a condo, you own everything from the walls inward. Depending on your homeowner’s association, you may or may not be responsible for maintaining the interior of your condo.

How your choice of property as a buyer affect your eligibility for financing options such as VA, FHA home loans, or other types of financing in California right now

Property ownership affects how you get home loans. In order to get a VA or an FHA loan to buy a condo, the entire complex must be eligible for and approved for VA or FHA financing. Loans for condominiums can be complex and can involve more underwriting steps than loans for single-family residences or townhomes.

Townhomes include ownership of land, and even if they’re part of a homeowner’s association or planned unit development (PUD), they can be eligible for a VA or FHA loan without an additional approval process.

Condominiums also have an additional hurdle that prospective owners seeking a mortgage could potentially face. A condo can be identified as “non-warrantable,” which means that it isn’t meeting conventional loan guidelines as established by Fannie Mae or Freddie Mac, the two national home mortgage-buying corporations.

With both a townhome and a condominium, your purchase price and home mortgage payment aren’t the only costs you’ll need to pay each month. Nearly all townhomes and condominiums have homeowners’ associations. The associations provide amenities, can maintain streets, and landscaping, and offer security services, including gates, guards, and other forms of security. Your monthly HOA fees are counted as part of your debt-to-income ratio when you are applying for a home loan to buy a condominium or a townhouse.

Sources

Headline scores 74 on Sharethrough now – I used basic knowledge and the original article to answer key questions.

https://www.bankrate.com/mortgages/types-of-mortgages/

California Platinum Loans

  https://californiaplatinumloans.com