Capital Home Mortgage Alabama

Alabama Jumbo Home Loans

Jumbo Mortgage Lender Alabama

Jumbo Home Loans in Alabama

A jumbo loan is a mortgage loan that exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limit. In Alabama, the conforming loan limit in most counties is $726,200.  A jumbo loan is any mortgage loan that exceeds this threshold.

Jumbo loans often require a higher credit score and a more significant down payment than conforming loans, and underwriting conditions may be more stringent. Additionally, jumbo loan interest rates may be higher than conforming loan rates. In Washington State, these loans are typically utilized to acquire more expensive properties, such as luxury residences.

Qualification Requirements of a Jumbo Loan

The three prerequisites for jumbo loans are a high credit score, a low debt-to-income (DTI) ratio, and adequate cash reserves.

  • Credit Score

A higher credit score is required to qualify for a jumbo loan than a conventional one. Lenders use your credit score to determine your financial reliability. A good score facilitates the demonstration of fiscal responsibility.

Depending on the lender, jumbo loans require a credit score of at least 720, while some offer jumbo loans to borrowers with a credit score of at least 700 and a more significant down payment requirement.

  • Debt-to-Income Ratio

In addition to reviewing your credit report, lenders will also consider your debt-to-income ratio (DTI). Your DTI is the ratio between your gross monthly income and total monthly debts. If your debt-to-income ratio is high, lenders may be concerned that you won’t be able to make your mortgage payments in times of financial difficulty.

In most cases, the maximum debt-to-income ratio (DTI) for jumbo loans is 43 percent. Lenders prefer a lower debt-to-income ratio without compensating factors.

  • Reserves

A cash reserve (also known as a mortgage reserve) is the “rainy day” reserve you’ve set aside for emergencies like job loss. 

You should demonstrate that your savings can cover at least six to twelve months of mortgage payments. Remember that you will still need to pay the down payment and closing charges if your loan is accepted. You must demonstrate that your cash reserves can meet the closing expenses and mortgage payments for at least six to twelve months.

Downpayment Requirement of a Jumbo Loan

As a general rule of thumb, you can anticipate making a down payment of at least 10% for a jumbo loan. While a 20% down payment is reasonable, certain lenders may ask for a 25% or even 30% minimum down payment. In the end, your credit score and debt-to-income ratio may determine the amount of the down payment required to qualify for a jumbo loan.

Apply For A Jumbo Home Loan in Alabama

Capital Home Mortgage Alabama is committed to providing a one-of-a-kind home-buying experience. Contact our Alabama Loan Officers at (205) 352-1030 to begin the application process for a Jumbo loan.

Why Alabama HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates and Low Fees

Exceptional Service

7  Day a Week Support Application to Final Mortgage Payment

Alabama Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Alabama Jumbo Home Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits.  Call today to speak to a loan officer.

  • Primary Residence and 2nd Homes
  • Higher Loan Amounts – 3 Million
  • Great Interest Rates
  • Investor Specific Guidelines

Alabama Mortgage Team

Dale Gremillion

Manager / Sr Loan Officer
NMLS 210325

Conor Hayhurst

Manager / Sr Loan Officer
NMLS 743506

Brad Rund

Director Native American Lending
Director Manufactured Housing

Alabama Mortgage Company Reviews

AlabAMA Cities

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