Prime Jumbo loans are mortgages specifically designed for high-value properties. Conventional loans top out between $647,200 and $970,800 depending on the county. If your client needs a mortgage for something more expensive than Conventional loans can cover, they need a Prime Jumbo loan.
Why consider a Jumbo Loan?
There are many reasons why your borrowers might consider a Prime Jumbo loan, such as
They are shopping for higher-priced properties.
They have good credit, consistent income, and little debt.
They are a high-income earner with additional assets.
They are looking to buy an investment property.
How do borrowers qualify for a Prime Jumbo Loan?
Your clients need a credit score of at least 660 to qualify for a Prime Jumbo loan. Debt-to-income ratio requirements vary depending on home value.
They will also need proof of strong financial history. This means when they apply, they will need copies of their bank statements and investment accounts. They will also need to provide a full tax return from the most recent year and other income and tax documents like 1099s and W2s.
Having a large amount of cash available may also improve their chances of qualifying for a Prime Jumbo loan.
What is the difference between a Prime Jumbo Loan and a Conforming Loan?
Every type of mortgage has a limit on how much someone can borrow for a given property. Conventional loans, also called conforming loans, max out at a little over $600,000 in most areas. Prime Jumbo loans have much higher limits and are designed for high-value properties.
Prime Jumbo loans have more strict qualification requirements than conforming loans, but A&D has flexibility.
What are the limits of a Prime Jumbo Loan?
The maximum loan amount on A&D’s Prime Jumbo loan is as high as $3 million and LTVs up to 80.00%!
What are the interest rates on a Prime Jumbo Loan?
Interest rates for Prime Jumbo loans are competitive with the rates for Conventional loans. The interest rate will vary based on each borrower’s unique financial situation, the property’s location and type, and the specific loan program.
Can first-time homebuyers get a Prime Jumbo Loan?
Yes. A first-time homebuyer is eligible only for a 30-year Fixed Primary residence with a maximum loan amount of $2.5 million. Maximum DTI is 43% and minimum reserves for loan amounts greater than $2 million are 24 months PITIA. Non-warrantable condominiums and rural properties are considered only on a case-by-case basis.
What kinds of homes can be purchased with a Prime Jumbo Loan?
Applicants can use a Prime Jumbo loan to purchase a variety of property types, including a vacation home, investment property, or primary residence.
What is a Prime Jumbo loan good for?
Great for needing a fast, easy underwrite on a Jumbo loan.
Does A&D Mortgage run Desktop Underwriter on Prime Jumbo loans?
Yes, we run it as Approved/Ineligible
Does A&D Mortgage provide manual underwriting on Prime Jumbo loans?
Yes, we will manually underwrite for any loan over $2 million with a maximum loan amount of $3 million.