Qualifying for a Jumbo Loan
These are private financing options for loans that are larger than allowed by conventional loans (loans over $766,550). These loans typically require excellent credit and larger down payments.
In terms of qualifying for the loan, there are four areas to consider:
Credit
Credit history must be good. Prospective borrowers should review their credit report with scores from all three bureaus. This type of report can be obtained by contacting First Equity at 734-475-0270.
Income
Borrowers must have a stable source of income. 24 month employment and/or college history is needed. Some exceptions do apply. Although programs may vary, generally the total debt, including the new house payment, should not exceed 45% of gross (pre-tax) income. Income from part time jobs, bonuses or commissions can be counted if there is a 2 year history.
Reserves
Reserves are a liquid source of cash that a borrower can tap into in case of an emergency. Some programs may require cash reserves. Although reserves are not always required, sometimes having reserves can help a borrower qualify. The most common forms of reserves are IRA or 401K.
Collateral
The home being purchased will be appraised to determine fair market value. If the appraiser states in the report that there is a health and safety concern, then a contractor's inspection or repairs may be needed.
We are here to help
Message us if you have additional questions, would like to get Pre-Qualified, or would like a quote. Let First Equity be your guide through the loan process.