Jumbo loans are characterized as any mortgage amount that exceeds the normal conforming loan limit of $510,400 for all of Nevada and most the U.S. Jumbo financing options are made available to qualified borrowers in Reno who want to borrow amounts above the conventional loan limit. If you reside in Nevada and are looking for a high balance loan, having a strong credit and employment history is key. Being able to fulfill these requirements ensure a better chance to receive the best rate and terms on your Jumbo mortgage.
There are subcategories available on Jumbo loans where buyers can make a down payment of 20%, 15%, 10% and even 5%. When you pay 10 percent of the total amount of the principal, it is called 90 percent Jumbo mortgage; whereas when you pay 5 percent of the amount of principal as down payment it is referred as 95 percent Jumbo loan.
Things to remember before applying:
Credit rating is important but it is not the only thing needed to acquire a Jumbo loan. Since the amount of the loan is greater, the risk to the lender or bank is also obviously higher. Most Jumbo lenders have strict policies for scrutiny of the borrowers who can qualify for Jumbo loans. Loan to value, credit history, and income are some of the crucial factors that determine the eligibility of the borrowers of Jumbo loans in Reno.
The interest rates on the Jumbo loans usually run a little higher when compared to regular conforming loans, again due to the higher incurred risk. However, with increasing property values across Washoe and Storey County, the popularity of Jumbo loans is also increasing. If you are planning to purchase a luxury property with minimal down payment, there are a few options available in 2018. The two most popular options remain the 10% down and 5% down payment programs. Each of these programs has exclusive requirements in regards to credit, occupancy, loan amount limits, etc. Buyers can read all the Jumbo purchase requirements here.
Loans can be structured different ways depending on the qualifying profile of the borrower – single loan, combo “piggyback” loans, etc. Borrowers also have an assortment of term choices like standard 30 year fix, 15 year fix, and adjustable, variable interest rate terms. All programs do require full principal and interest payments as “interest only” and negative amortization is not available.
Note, homeowners that already have a jumbo loan can read about rate term and cash out refinance programs here.
Contact us today to analyze all the options and select the best one based on your financial situation. We can be reached 7 days a week by calling the number above, or just submit the Quick Call Form on this page for immediate service.
Serving buyers nationwide including Reno, Lake Tahoe, Carson City & Sparks