Get a Jumbo Loan Today!

​Jumbo loans fall into the “non-conforming” category because they do not fit within the guidelines set by Freddie Mac or Fannie Mae. Freddie Mac and Fannie Mae were created by Congress to provide the housing market with stability and keep things within an affordable range through the use set guidelines. Mortgages that conform to these guidelines give lenders fluidity to sell conforming mortgages in order to make more. If a mortgage does not meet the guidelines, Fannie Mae and Freddie Mac will not purchase them.

Why Would You need a Jumbo Home Loan?

Home loans in Oregon that are larger than the set limits are too big to be backed by government-sponsored companies. In other words, you want to borrow more money than the government wants to back. A buyer typically has a need for these loans when they are looking at purchasing an expensive luxury home or a property that is in a very competitive area with a very high cost of living.

​The FHFA website can give you the current conforming limits for specific areas so that you can check if the property you are eye-balling has to be purchased with a jumbo loan.

Qualifying for a Jumbo Home Loan

When applying for jumbo home loans in Oregon you will be put under a microscope since the amount you are asking to borrow is so substantial and the risk involved s high. Though this loan is not a traditional conforming loan, the method for figuring out if you qualify is the same. You can expect a lender to look at your credit score and history, amount you can use for a down payment, your debt-to-income ratio, and what your finances will look like after closing.

Typically, if your credit score is good enough to get you a conforming loan, it will be enough to get you a jumbo home loan. A credit rating starting at 680 can score you most loan options. However, you will have a higher interest rate as well. A score that is at least a 780 will get you the best credit rates and options available.

The lender will also look at your reserves, or, the amount of money you will have left over after you close on the property. This aspect of qualifying for a loan is stricter than that of a conforming loan. Lenders will look for about 12 months of reserves available after closing. With a conforming loan, a lender will adjust the reserves amount to anywhere in between o and 12 months depending on your credit, down payment, and debt-to-income ratio.

Benefits of a Jumbo Loan

• Bigger Loan Limits: Gives you the ability to borrow more money than what is allotted in the Freddie Mac or Fannie Mae guideline limits.
• Flexible Debt-to-income Ratio: A conforming loan will want at least a 20 percent down payment. They also want to see a debt-to-income ratio of less than 43 percent. A jumbo home loan will give you a little leeway if other circumstances that make a higher debt-to-income ratio look not as risky. For example, if you will have a substantial reserve after closing, you may be allowed to have a ratio that is higher than ideal.
• Lower Down Payments: Jumbo home loans can require down payments as low as 10 percent. They also may not make it a requirement that you purchase homeowners’ insurance. The trade-off is usually an interest rate that is slightly higher and you have to carry a lower debt- to-income ratio.

Call today!
(541) 403-8727

​(Click to call from mobile device)