There is more than one kind of mortgage. If you are considering purchasing a home that is on the expensive side, you may want to seek out a jumbo mortgage in Ponte Vedra Beach. It’s ok if you aren’t familiar with them, most people aren’t. They do provide benefits that traditional loans don’t, though. The following are some things you should know about jumbo loans to get you started.
They’re Over the Conforming Loan Limit
A jumbo mortgage is designed for borrowers who need a loan that is over the conforming loan limit. Typically, the conforming limit is $548,250, so any home costing more than that won’t be eligible for a traditional mortgage. This may vary if you live in a high-value area, like California or New York because so many homes are valued at more than the conforming limit.
If you are planning to refinance using a jumbo mortgage in Ponte Vedra Beach, the maximum amount for the loan is 95% of the home’s value. The required downpayment is also higher than a traditional or FHA loan.
The Requirements Are More Stringent
The credit score you need to get a jumbo loan is higher than a traditional or FHA loan. This makes sense since you are borrowing a higher amount of money. Generally, you will need a credit score of at least 680, but it’s better if your score is in the 700s.
If you are in the market for a home and a traditional loan isn’t quite meeting your needs, a jumbo mortgage may be the way to go. To learn more, contact The Mortgage Lady Team – Fairway Independent Mortgage Corp today.