As your top mortgage company in Utah, we at Community Lending Group know how wide a variety of customers and corresponding needs we have. In particular, given the rise of property value and home construction in nicer areas like Park City over recent decades, we know that many of our clients need larger loan amounts than the traditional limits.
This is where our jumbo loans come in. A jumbo loan is a way for qualified borrowers to get far more than the traditional limit on a loan, which can prevent the need for multiple loans or other hoops to jump through during financing. Let’s find out how a jumbo loan works, and whether it might be right for you.
In a conventional loan situation, you as a borrower will be limited to a borrowing threshold known as the “conforming loan limit.” This total varies between about $400,000 and $700,000 depending on where you live, plus a few other small factors.
With jumbo loans, this amount is heavily increased. There’s a trade-off – your credit and down payment requirements will generally be much higher, and mortgage rates are generally pretty high as well. These are to protect the lender from higher risk, but if you qualify for the income-related requirements, they shouldn’t be an issue for you with proper financial planning.
At Community Lending Group, we offer jumbo loans up to amounts of $2 million for qualified borrowers. Rather than being forced to cobble together multiple smaller loans under the conforming limit, this single option can get you the money you need as long as you qualify.
Many lenders offer both 15- and 30-year periods for jumbo loans, plus both fixed and adjustable rates. This means that refinancing is often an option down the line if needed. Mortgage insurance typically isn’t required – qualifying for stricter financial thresholds makes this less necessary for banks to counter risk.
Want to learn more about jumbo loans, or any of our other mortgage services? The brokers at Community Lending Group are standing by.