A jumbo loan is one that exceeds county lending limits. A jumbo loan typically has much stricter requirements as it is considered a higher risk loan. Borrowers need to have exceptional credit and larger down payments.
Jumbo Loan Qualification Requirements
Below are the basic qualification requirements for jumbo loans:
Reserves
In addition to having a large down payment, borrowers need to have substantial reserves. Reserves are funds in savings accounts that can be relied upon in the event that the borrower loses their employment.
Credit Score
Your credit score shows your history of handling debt and is the strongest indicator of whether or not you will pay your mortgage on time. High credit scores may result in lower interest rates and greater financing options.
Job History
When qualifying for a jumbo loan, you must have a strong employment history. If you have recently switched jobs it may be difficult to qualify for a jumbo loan.
