Capital Home Mortgage Abilene

Abilene Jumbo Home Loans

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Abilene Jumbo Home Loans

Abilene Jumbo Home Loans

Rising home prices have made it challenging to purchase a home in some parts of the country in recent years, significantly where home prices have outpaced the lending capacities of traditional lenders. You’ll need a jumbo loan to finance a home purchase that costs more than the maximum allowed in Abilene.

Qualifying for a Jumbo Loan

Jumbo loans are non-conforming loans used to finance high-value properties. These loans are perfect for high-income individuals needing a higher loan amount to buy a luxury/high-priced residential or investment property. In cities with competitive housing markets, like New York and Los Angeles, a jumbo loan may be the only way to buy a home.

While jumbo loans grant you access to expensive properties, they are riskier for lenders and, thus, have stricter underwriting criteria. Banks can choose to sell conventional conforming mortgages to one of two government-sponsored enterprises (GSEs), Fannie Mae or Freddie Mac, allowing them to expand their lending capacity and serve more customers.

With jumbo loans, financial institutions do not have this option and must keep the loan on their balance sheet for the entire loan duration. To mitigate this potential loss, banks and other lending institutions typically scrutinize jumbo loan applicants’ loans more closely, making a spotless credit history and solid financial standing necessary for borrowers. 

Jumbo Loan Requirements

You’ll need to meet lender requirements to qualify for a jumbo loan. While the standards may vary across lenders, most of them will want to see the following:

     1. A high credit score

To get approved for a jumbo loan, you’ll need a FICO score of at least 700. Some lenders may even require a score of 720 or higher.

     2. A low debt-to-income ratio

Lenders will look at your debt-to-income ratio (DTI) to ensure you don’t get too heavily in debt, though they may be more lenient if you have a lot of savings. Most lenders, however, set the limit at  45% DTI.

     3. Enough funds to cover upfront costs

Numerous lenders accept 10% or less as a down payment on conforming loans. However, they usually require at least 20% upfront for jumbo loans. Aside from the down payment, you’ll also need to cover the closing costs, which can be between 3%-6% of the total loan value.

     4. Plenty of cash reserves

The more money you have in your bank account, the higher your chance of getting approved for a jumbo loan. It is not uncommon for lenders to require jumbo loan borrowers to show proof that they have sufficient liquid assets to cover one year’s worth of mortgage payments.

     5. Necessary financial documents

You will need extensive documentation to demonstrate your financial health, possibly more than for a conforming loan. Prepare to submit your complete tax returns, W-2s, and 1099s, along with bank statements and details about any investment accounts upon application.

     6. Home Appraisal

Depending on the lender, a second home appraisal may be required for the property you intend to purchase.

Is a Jumbo Loan Right For Me?

Whether a jumbo loan is right for you is contingent on several factors. These types of loans expand the options for home ownership, making them especially advantageous in regions of the country where housing is costly. 

If the home you wish to purchase does not meet conforming loan requirements, a jumbo loan may be appropriate. However, a jumbo loan is not designed to stretch your financial limits to the brink. They are intended for buyers with substantial, stable incomes and resources.

Capital Home Mortgage’s loan specialists are just a phone call away if you need assistance selecting the right mortgage. We will gladly answer your mortgage-related questions and provide you with the necessary information to become an informed consumer. Call us at (325) 387-8387 now.

Why Abilene is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Abilene Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Abilene Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Abilene 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

Quick Facts for Abilene Jumbo Loans

  • Up to 3 Million Loan Amounts
  • Up to 90% Loan to Value
  • Traditional and Non QM Programs
  • Subject to Investor Requirements
Jumbo Home Lender Benefits
  • Up to 3 Million Loan Amounts
  • Up to 90% Loan to Value
  • Traditional and Non QM Programs
  • Subject to Investor Requirements
Home Purchase
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Abilene Mortgage Team

Conor Hayhurst

Managing Director
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

Chris Erwin

Loan Officer
NMLS 914064

Dale Gremillion

NMLS 210325

Abilene Mortgage Company Reviews

What is an Abilene Jumbo Mortgage Loan?

Jumbo home loans, also called a non-conforming home loans, are home loan that exceeds the county lending limits of the GSE’s Fannie Mae and Freddie Mac.  Jumbo loans are backed by private investors and have different underwriting requirements from traditional Conventional and government home loans.   These guidelines are typically more restrictive, but do make it possible for larger home purchases to be financed. 

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