Jumbo Loan – Easy Access to Large Loan Amounts
These days there are various ways to get access to finance. Whether you need to buy a car, finance your studies or buy your first home, there are ways to get it done. Banks, micro lenders, private lenders and other financial institutions offer finance.
It’s no secret that the credit crunch of 2008 made banking institutions all over the world more cautious over the years. Lending criteria have become more stringent.
Despite this change, banks have realised the potential in providing finance for individuals with unique financial needs.
A loan is considered jumbo if it exceeds the conforming high-balance loan limits. It is one way to high-priced or luxury home. These types of loans are also known as non-conforming loans because they don’t fit within the normal parameters.
Getting a jumbo loan means that you may have to pay a larger down payment. It is also usually available for primary residences, second vacation homes and investment properties. So if you’re looking to buy a property that is quite costly, you can apply for a jumbo loan.
You get low rates and flexible repayment options while getting access to at least $5 million in finance. These loans have higher loan limits than others.
Qualification criteria and terms vary. In general, you need to be above the age of 18 years, with a steady source of income. You need to prove that you will be able to afford to make repayments and you need to be prepared for a review of your credit record. You need to be prepared to pay a larger deposit too.
Using a jumbo loan is becoming increasingly popular. In 2015 alone, lenders provided an estimated $320 billion in jumbo mortgage financing. As a result, continued demand is expected in 2016.