When you are applying for a home purchase loan in Orange County or anywhere in California, the amount you wish to borrow will determine whether or not you need to apply for a jumbo loan.
While many customers assume that a jumbo loan will cost them more than a conventional loan, this does not necessarily need to be the case, particularly with the right lender on your side.
If you are not familiar with jumbo loans, they are simply loans which exceed the conforming limits set by Fannie Mae and Freddie Mac.
Here are the conventional loan limits for Orange County:
While these conventional loan limits are set higher for Orange County than they are for most US counties, there are still quite a few OC homes which require loan amounts larger than the thresholds above.
The basic process of applying for a jumbo loan is very similar to that of applying for a conventional loan. Qualification requirements are also similar, but there are some differences:
Credit score and debt-to-income ratio requirements are more strict.
In some cases, you will need to demonstrate that you have more cash reserves.
The down payment requirement is a minimum of 10% and rates get better with 20% or more down.
It is important to note that interest rates for jumbo loans are not necessarily going to exceed those of conventional loans every time. With the right qualifications and a dedicated mortgage company working with you, your rates can be every bit as affordable for a jumbo loan as they would be for a conventional loan.
The Grand Lending Team of Grand Avenue Reality & Lending is committed to making sure that you get the most competitive rates and terms on your loan, regardless of whether it is a conventional or jumbo loan. Please call us today at (949) 202-5332. We would love to schedule your consultation and match you up with the most suitable loan product.
Grand Avenue Realty & Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.