Jumbo Home Loans In Spokane

What is a Jumbo Mortgage?

When a mortgage exceeds these conventional conforming loan limits, it is known as a jumbo mortgage. Typically, these are used to finance pricier properties, such as prestige residences or properties in highly competitive local real estate markets. Additionally, they can be used for investment properties and vacation residences.

A jumbo mortgage is a non-conforming loan that exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limits. These conforming loan limits represent the maximum loan amounts that Fannie Mae and Freddie Mac, two U.S. government-sponsored enterprises, will purchase from a lender. Spokane’s limit for a single-family home in 2023 is $726,200, but it may be higher in specific expensive markets.

Key Features of a Jumbo Loan

Jumbo loans can offer flexibility to borrowers who need to borrow larger amounts, but they come with stricter requirements due to the higher level of risk assumed by lenders.

Here are the key features of a Spokane Jumbo Loan:

• Loan Amount

Jumbo loans cover loan amounts that exceed the norm. The size of a jumbo loan varies by geographic location, but as of 2023, it can be as high as $5 million or more in most of the United States.

• Stricter Requirements

The underwriting standards for jumbo loans are more stringent, requiring higher credit scores, income/assets, and a larger down payment. To qualify for a jumbo loan, your FICO score may need to be at least 700, sometimes as high as 720 – 740.

• Property Types

Jumbo loans can be used to finance a wide range of properties, including principal residences, vacation homes, and investment properties.

• Down Payment

Jumbo loans often require a considerably larger down payment than conforming loans. Lenders usually ask 20% down on jumbo loans for single-family homes and maybe more for second homes and multifamily units.

• Debt-to-Income (DTI) Ratio

Lenders will also examine your debt-to-income ratio (DTI) to ensure you’re well-versed. They may be more flexible with this percentage than with conforming loans.

• Interest Rates

Jumbo loan interest rates can differ and usually are higher than conforming mortgage interest rates. However, under some conditions, these rates can be competitive.

• Loan Terms

Jumbo loans, like conventional mortgages, include a choice of terms and repayment schedules, and they can be fixed-rate or adjustable-rate loans.

• Reserves

Actual reserve requirements depend on the lender’s policies, the borrower’s creditworthiness, the loan amount, and other variables. A typical lender requires a reserve of six to twelve months for a jumbo loan.

Apply for a Jumbo Loan in Spokane

Capital Home Mortgage offers Spokane homebuyers access to jumbo loans, which are advantageous for purchasing high-priced properties in Spokane, a city with a growing real estate market. In excess of the conventional loan limit, jumbo loans are designed for those seeking luxury residences or properties with a high value. In contrast to smaller conforming loans, which may need to be divided, jumbo loans can be consolidated into a single mortgage, simplifying financial management. Using Capital Home Mortgage for a jumbo loan can provide Spokane home buyers with increased purchasing power, financial flexibility, and convenience during home-buying.

Call us today at (253) 528-4417 to speak with one of our Spokane Jumbo Loan Specialists.