Are you curious about how super jumbo mortgages work? They’re not as scary as they sound! Let’s dive into the details and make sense of it all.

People who want to buy a home in Los Angeles can need a super jumbo mortgage to finance their home purchase. “Jumbo” says “large,” but how large are super jumbo mortgages and how do they work?

We’ve put together some of the basics about jumbo mortgages and how they work.

What Are Super Jumbo Mortgages?

Jumbo mortgages are home loans in amounts that exceed the Federal Housing Finance Agency (FHFA) limits for government-backed loans. For 2023, the conforming loan limits for Los Angeles County are $1,089,300 for a single family home, ranging up to 2,095,200 for a four-unit property.

Mortgages for more than these amounts are considered “jumbo” mortgages. A loan becomes a “super jumbo” mortgage when it exceeds $650,000, although you will find some lenders who use $1 million as the base for a super jumbo mortgage. 

In Los Angeles County, with a median home sales price of over $1 million, many jumbo mortgages are also automatically “super jumbo” mortgages.

How Do Jumbo Loans Work?

Jumbo mortgages aren’t guaranteed by home loan agencies like Freddie Mac and Fannie Mae. As a result, they operate under a different set of criteria.

Whether they are a regular jumbo or a super jumbo mortgage, these loans usually require better credit than smaller mortgages. The reason? Conforming or conventional mortgages can be backed by Fannie Mae or Freddie Mac, reducing the lender’s risk. In addition, the larger mortgage amounts also carry additional lending risk.

You will also find that jumbo mortgages require a debt-to-income (DTI) ratio lower than 43%. These mortgages also typically, but not always, require good credit scores.

Do Jumbo Mortgages Have High Interest Rates?

In the past, many jumbo mortgages had higher interest rates than non-jumbo mortgages. However, Investopedia reported that in 2022, some 30-year fixed rate jumbo mortgages had lower interest rates than 30-year fixed-rate conforming mortgages.

Do You Need A High Down Payment For A Jumbo Mortgage?

In previous years, many jumbo mortgage issuers required a 30% down payment for a jumbo loan. This high level of down payment is no longer required. 

Working with an expert mortgage broker, you can determine which jumbo mortgage is right for you. Each borrower’s situation is unique. Contact California Platinum Loans today to learn which super jumbo home loan is right for you.

Sources:

Investopedia Team, “Jumbo Loan,” 21 December 2022

U.S. Department of Housing & Urban Development, “Maximum Mortgage Limits 2023”

California Platinum Loans

  https://californiaplatinumloans.com

Your Super Jumbo Mortgage: Can You Get A $10 Million Mortgage And Buy Your Dream Home? Can The Term Be as Light As Payable in 30 Years?

What is a super jumbo mortgage? A super jumbo loan significantly exceeds conforming loan limits published by the Federal Housing Financing Agency (FHFA). A “regular” jumbo mortgage is a mortgage for more than $484,350 in lower housing cost counties. In higher cost counties, “regular” jumbo mortgages are any amount over $726,525. If you want a jumbo mortgage of $5 million or $10 million or more, you’ll have different loan terms and different underwriting standards than loans issued for lower amounts.

Can I get a 30-year jumbo mortgage? What are 30-year jumbo mortgage rates?

If you’ve been looking for super jumbo mortgage rates online, you’ve probably discovered that most, if not all, online mortgage calculators don’t go over $1.5 to $2 million, much less $10 million.

30-year jumbo home loan rates may have higher interest rates than the lowest conforming 30-year mortgage rates you’ll see quoted online. A benchmarked rate uses a survey of the largest mortgage lenders, including banks like Wells Fargo. The benchmark rate will be the median rate from all of the surveyed lenders. For example, you might find rates averaged between the largest home mortgage lenders that include:

  • 30-year jumbo mortgage rate: 4.08% with a 4.20% APR
  • 15-year jumbo mortgage rate: 3.85% with a 4.05% APR

In jumbo ARM mortgages, you can find more variable rates, including:

  • 5/1 ARM jumbo mortgage rate: 3.89% with a 7.11% APR
  • 7/1 ARM jumbo mortgage rate: 3.82% with a 6.22% APR

How do you qualify for a super jumbo home mortgage? What are jumbo loan requirements?

Underwriting criteria for mortgages can go on for hundreds of pages. This is one of the most important reasons you should work with a qualified home mortgage specialist. Mortgage loan specialists know the requirements for dozens of different lenders. They can locate the super jumbo mortgage that’s right for you. They can make the qualification process smooth and trouble-free, so you can receive a super jumbo mortgage of $5 million or $10 million to buy the elite property you desire.

When qualifying for a super jumbo mortgage, the entire process differs from the process for conforming mortgages with lower amounts. Your mortgage specialist will help to structure the super jumbo mortgage that best suits your finances and home purchase selection. You can access this concierge mortgage service by working with a mortgage professional who will offer you security, privacy, and confidence to receive the best super jumbo home loan for $10 million or more.

Sources

https://www.bankrate.com/mortgage.aspx?

California Platinum Loans

  https://californiaplatinumloans.com

What Exactly Is A VA Jumbo Mortgage? In This Current Period, Do You Still Need This Type Of Mortgage to Buy a Higher-Priced Home?

You’ve probably heard by now that the VA county mortgage loan limits are no longer in force as of January 2020. But you may still hear the terms “VA Jumbo home mortgage” or “jumbo VA home loan.” If there are no more VA loan limits, why would loans still use the “jumbo” word? The difference refers to Federal Housing Finance Agency (FHFA) conforming loan limits. These limits are the source of the terms “conforming” and “non-conforming” loan and “jumbo” loan. A jumbo home mortgage is any mortgage larger than the FHFA loan limits. Along with the financial limits, “conforming” loans also have underwriting guidelines from the government-sponsored agencies that buy the loans: Freddie Mac and Fannie Mae.

What is a VA jumbo home mortgage?

Even though you can get any size VA home mortgage that you can qualify for, VA jumbo mortgages will exceed the FHFA county conforming loan limits.

In many counties, the FHFA conforming loan limit is $484,350 for a single-family home mortgage. In higher housing price counties, the conforming loan limit is $726,525 for a single-family home loan. These limits also increase depending on the number of units in a property. In a high housing-priced county, the conforming loan limit for a 4-unit property maxes out at $1,397,400.

A VA jumbo mortgage exceeds any of these amounts, varying depending on the county where you want to buy. You may still be eligible for a no-money-down VA loan. Your funding fee on a VA jumbo home mortgage may also vary depending on your lender and their policies.

You can still get a VA mortgage at less than the FHFA conforming loan limits with no money down, and you can still roll your funding fee into the VA mortgage.

Some requirements for a VA jumbo home mortgage will differ between lenders. Although you may need to make a down payment for a jumbo VA home loan, it’s calculated as a percentage of the difference between the county conforming loan limit on the property you want to buy and your total mortgage amount.

A VA jumbo home mortgage could help you to buy the home you need and it can help you to ensure you and your family’s financial security. Talk with a knowledgeable, trained VA mortgage specialist to learn what your options are in a 30-year fixed rate VA jumbo home mortgage or other loan terms and options.

Sources

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2019.aspx

California Platinum Loans

  https://californiaplatinumloans.com