Do you need to borrow more than is possible with a conforming mortgage? If so, it could be that a jumbo loan is your ticket to purchasing your dream property in Arizona.
What is a Jumbo Loan?
A jumbo loan is a non-conforming mortgage. That means that it does not conform to the loan limits for Fannie Mae and Freddie Mac.
A conforming loan is a type of conventional loan. The same is true for a non-conforming loan. Neither type of loan is backed by a government agency such as the VA, USDA or FHA.
Do You Need a Jumbo Loan in Arizona?
Whether a jumbo loan or conforming mortgage is appropriate for your scenario depends on how much you need to borrow.
If you need to borrow above the conforming loan limits, then a jumbo loan is required. Here are the conforming loan limits for Arizona:
Technically, the loan limits are set by county, not by state. But only in certain high-cost counties across the US are there higher loan limits. As none of those counties are located in Arizona, that means that the conforming loan limits are identical across the state, including in Tempe and Phoenix.
How Do You Qualify for a Jumbo Mortgage in Tempe?
Jumbo mortgages are just as easy to apply for as conforming loans, though the criteria are more rigorous. To apply successfully, you need:
- A high credit score.
- A low debt-to-income ratio.
- A steady employment history.
- At least six months of cash reserves.
- Funds for a 15% down payment or higher.
- Two appraisals (sometimes).
The exact minimum down payment you will have to make will depend on the details of your qualifications.
First time homebuyers sometimes think that a jumbo loan is not an option for them. But many first time homebuyers have used these mortgage just as successfully as returning homebuyers to purchase their dream homes.
Apply for an AZ Jumbo Loan
Misty Garrison is here to answer your questions about jumbo loans, help you figure out if a non-conforming loan is right for you, and walk you through your application. To get started now, please call today at (480) 618-5358 to schedule your consultation.
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