Since the recession began in 2008, it has been more difficult for prospective homeowners without perfect credit to find affordable financing to purchase their dream home. Recently though, there seems to have been a shift toward easing qualification criteria for buyers who need a Jumbo Loan to purchase their property. Conforming jumbos are more readily available with just a 10 percent down payment. Nonconforming jumbo loans might require up to a 15 percent downpayment. For either of these mortgage products, you will need an above average credit score.
This trend shows that lenders are ready to take risks again and this is a good sign for the housing industry. Because lenders don’t sell their nonconforming jumbo loans to investors like Fannie Mae, they have to be caution about who they loan money to. The fact that mortgage companies are willing to allocate more of their money toward these large loans shows that the industry is making a comeback. If you need a jumbo loan for your home purchase or refinance, contact a lender such as Village Mortgage to find out if you meet the credit requirements.
With property values on the rise, more buyers are in the market for a Jumbo Loan and more will be able to get the loan they seek than in recent years. It is important for anyone in the market for a high-value home to pay special attention to their credit because a drop in your credit score could disqualify you for this kind of mortgage. Fortunately, there are websites that will allow you to monitor your credit and report any discrepancies as soon as they hit your credit file. Knowing where you stand before you apply for a loan can give you more control over the loan process.
While this certainly seems to be a great time to get into the housing market, this trend could shift at any time. Talk to a lender as soon as you feel you are ready to purchase a home so you can get started on the application and ensure you get the best possible rate for your jumbo mortgage.
