Think you may need to apply for a jumbo loan in Arizona? If this is your first time applying for a jumbo mortgage, you may have quite a few questions. Below are answers to some of the questions which customers commonly ask about these types of loans.
Q: Do I need a jumbo loan?
A: That depends on whether you need to borrow more than the conforming loan limits for conventional mortgages. These limits are set by county. As an example, if you need to borrow more than $484,350 in Maricopa County for a one-unit home, you would require a jumbo mortgage.
Q: Can I get a jumbo loan as a first-time homebuyer?
A: Yes. Qualifying for a jumbo mortgage as a first-time homebuyer may be more challenging if you are still establishing your credit score and are still earning a modest income. But it is entirely possible to obtain approval if you meet the basic requirements.
Q: Is it hard to qualify for a jumbo loan?
A: The requirements for a jumbo mortgage are more demanding than those for a conventional mortgage. Whether or not that makes the jumbo loan “easy” or “hard” to qualify for entirely depends on your personal financial situation. The better your financial metrics are and the more steady your employment profile is, the more likely it is you will be approved for a competitive jumbo mortgage.
Q: Do I have to use a jumbo loan only for a primary residence?
A: No. While many borrowers do choose jumbo mortgages to finance primary residences, many also take out jumbo loans to purchase second homes, vacation homes or investment properties.
Q: Do I have to put a huge down payment on a home with a jumbo loan?
A: Not necessarily. Even though jumbo mortgage down payments are higher on average than those of corresponding conventional loans, some jumbo mortgages may actually carry lower down payment requirements than certain conventional mortgages. Anywhere from 10% to 30% is possible.
Q: Will my interest rate be higher with a jumbo mortgage in Arizona?
A: On average, interest rates for jumbo loans are higher than they would be for conventional financing. But once again, it is entirely possible that your interest rate will be no higher than it would be if you took out a conventional loan. It all depends on your borrower profile as well as the mortgage company you choose to do business with.
When you schedule a consultation with Barrett Financial Group, we can answer all of your questions about jumbo loans, and connect you to one with a competitive interest rate and other fantastic features. Get started today by calling us at (480) 470-1080.