A Little Bit About Jumbo Loans
A jumbo loan is one that’s worth more than conforming loan standards in your area. You usually need a jumbo loan if you want to buy a high-value property.
Jumbo loan interest rates are usually similar to conforming interest rates, but they’re more difficult to qualify for than other types of loans. You’ll need to have a higher credit score and a lower DTI to qualify for a jumbo loan.
Pros Of Jumbo Loans:
- Their interest rates are similar to conforming loan interest rates.
- You can borrow more for a more expensive home.
Cons Of Jumbo Loans:
- It’s difficult to qualify for, typically requiring a credit score of 700 or higher, significant assets and a low DTI ratio.
- You’ll need a large down payment, typically between 10 – 20%.