What is a jumbo mortgage and when do you need one? In this article featured on Bankrate.com, Managing Director Robert Cohan discusses recent trends in jumbo mortgages, qualifying criteria and more. Excerpt below and view the entire article here.
How to qualify for a jumbo mortgage
Jumbo lenders usually have stricter underwriting guidelines. The main reason for this is that they’re not backed by Fannie or Freddie, so they’re riskier loans. On the flip side, lenders have more to gain since the dollar value is higher and they can offer additional services to these wealthier customers.
The three common hurdles borrowers must clear to get jumbo-loan approval are larger income, higher credit scores and greater reserves, says Robert Cohan, president of Carlyle Financial based in San Francisco.
“To consider a jumbo loan the FICO scores have to be higher. The average is around 740, although I have seen some as low as 660,” Cohan says.
Full article may be viewed here.
To speak with a mortgage expert get started here.