A JUMBO home loan is a loan that is greater than the the local maximum Conforming or Conventional loan limit. In Maricopa County, Arizona a JUMBO loan is any home loan over $510,400.
What is a JUMBO Mortgage?
A “JUMBO Home Loan” and a “Non-Conforming Home Loan Amount” are synonymous. Both refer to loan amounts exceeding an area’s local Conforming Loan limit. Loans below an area’s Conforming Loan limit are “Conforming Home Loans”.
This important JUMBO threshold varies in some high cost Counties. However, in all Arizona Counties and in most US Counties the 2020 Conforming Loan limit is $510,400. As a result, in most Counties a JUMBO loan is a loan equal to or greater than $510,401 in 2020.
JUMBO and Non JUMBO Loan Differences
Aside from the loan amount differences above, JUMBO Loans differ from Non JUMBO Loans in other ways. For example, JUMBO Loans may differ from Conventional loans in some or all of the following areas:
- Down payment
- Interest rates
- Loan terms
- Underwriting requirements
- Appraisal requirements
However, JUMBO Loans typically do not take longer to originate, underwrite and fund. While many consumers feel JUMBO loans take a long time they usually can close within 30 days from start to finish. Complicated JUMBO Loan files may take longer to close.
JUMBO Home Loan Types
JUMBO mortgage options range from buying and refinancing to renovating and building a new home. Below is an outline of each JUMBO home loan offered by our team.
Purchase Loan
JUMBO home loans help consumers finance either an existing home or a newly constructed home.
Rate & Term Refinance (non-cash out)
Current homeowner’s use JUMBO Rate & Term refinances for several reasons. The most popular being to refinance into a lower interest rate. Additionally, rate & term refinances help reduce or extend the term of the loan. Also, someone may refinance into OR out of an Adjustable Rate Mortgage via a rate & term refinance.
No Seasoning Cash Out Refinance
The no seasoning or “delayed financing” cash out refinance1 helps in special situations. The program allows cash buyers to complete a cash out refinance without waiting out normal cash out seasoning time-frames.
Refinance to Cash Out
Cash out refinances help homeowners accomplish many different goals. You will receive a lump sum of cash that you can use however you like. Common uses for this cash include other purchases, investments, debt consolidation, home improvements and more.
Rehab or Renovation Mortgage
JUMBO loans also allow for a renovation option. JUMBO Renovation or rehab loans help homeowners finance reno costs into their mortgage. Additionally, these products allow the mortgage to close / fund before any reno work is completed.
JUMBO Loan Qualification – 4 Steps
Mortgage loan qualification is what starts the homebuying process. You’ll provide information on your credit, income, assets and debts so we can give you an estimate of the size of a loan you can afford. There’s never a charge to get qualified with us. In fact, all it takes is 4 steps:
- Consult with Loan Specialist
Consulting with a HOUSE Team Loan Officer lets us know how to best structure your new JUMBO loan.
- Loan Application
Completing an application takes approx 10 mins and may be done on the phone or online.
- Supporting Documentation
Provide documents such as pay-stubs, W2’s and bank statements requested by our team.
- Lender Review & Pre-Approval Complete
Once our team completes the review of your application and documents we complete your pre-approval.
