Jumbo Loans in Michigan
Need to borrow more than you can with a conventional conforming loan to buy a home in Royal Oak, Detroit, or elsewhere in MI?
Then you need a jumbo loan. With this type of mortgage, you can borrow what you need to purchase your dream home.
What is a Jumbo Mortgage?
A jumbo mortgage is a type of conventional loan. It is not backed by the government.
It is different from a conventional conforming loan in that it is not bound by the Fannie Mae and Freddie Mac conforming loan limits.
You can find out whether you need a jumbo loan by checking the conforming loan limits for your county.
Do You Need a Jumbo Loan in Royal Oak or Detroit?
The conforming loan limits for Oakland and Wayne counties are listed below:
One unit:
$510,400
Two units:
$653,550
Three units:
$789,950
Four units:
$981,700
Even though many area properties are available at lower prices, it is not unusual to need to borrow more than these limits allow.
Eligibility for Jumbo Mortgages
How do you qualify for a jumbo loan? Lenders assess the same basic factors for jumbo loans as they do for conforming loans:
- Your credit score
- Your debt-to-income (DTI) ratio
- Your income
- Your assets
- Your reserves
- Your ability to make a down payment
The difference is that the approval criteria are more strict for this type of mortgage. Plus, you normally need to be able to put down more on a home. How much? Usually between 15% and 30%.
As far as cash reserves go, look to stockpile around six months or a year’s worth.
Also important to know is that the requirement for appraisals is different. When you apply for a conforming mortgage, you generally only require a single appraisal. but when you apply for a jumbo loan, you normally need two of them.
Apply Now for Competitive Jumbo Financing in MI
We can walk you through the application process and give you recommendations for enhancing your eligibility as a borrower for a jumbo loan.
Jumbo mortgages can be very competitive for qualifying applicants. We work hard to match you with excellent rates and terms.
Along with customers in Detroit, Royal Oak, and the rest of the state of Michigan, we also serve customers in Florida, Ohio, Colorado and Texas. To schedule your consultation for a jumbo loan, please call us today at (248) 930-8709.
