Jumbo Loans in Phoenix

Looking to purchase a home in Phoenix which exceeds the conforming loan limits set by Fannie Mae and Freddie Mac? A jumbo loan allows you to obtain the financing you need to make the home of your dreams your own.

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What is a Phoenix Jumbo Loan?

A Phoenix jumbo loan can be an option in situations where you cannot qualify for conventional financing. Conventional loans are those which fall within Fannie Mae and Freddie Mac’s conforming limits (see below). Jumbo loans are for home purchases which require you to borrow more than those amounts.

Do You Need a Jumbo Loan in Phoenix?

Phoenix is located in Maricopa County, which has the following conventional loan limits:

1 unit:

$484,350

2 units:

$620,200

3 units:

$749,650

4 units:

$931,600

Thankfully, the typical home price in Phoenix is lower than the conventional loan limit for a single unit home. There are still plenty of properties, however, which exceed that threshold and which require jumbo financing.

How Do You Qualify for a Jumbo Loan in Arizona?

As a home buyer, you may have concerns about jumbo financing. Is it more expensive than conventional financing? Is it harder to qualify for? The answers to these questions are more favorable than you might expect. Below, you can read a bit more about qualifying for a jumbo loan.

You may need a slightly higher credit score in order to qualify for a competitive jumbo loan than you would for a corresponding conventional loan. The key to meeting these criteria is to plan ahead.

Debt-to-income ratio requirements likewise can be tighter. This too may require a little preparation before you apply. We can advise you during your consultation on what you might qualify and offer you tips for improving this and other metrics if necessary.

You will need to be prepared for a down payment anywhere from 15% to 30%. Consider that conventional loans can carry down payment requirements as high as 20%. That means that in some situations, you might qualify for a jumbo loan with a lower down payment requirement than a conventional loan.

You are expected to show anywhere from six months to a year’s cash reserves.

It is likely that you will need to have the property you are purchasing with the loan appraised two times.

As you can see, qualify for a jumbo loan can be a little more challenging than qualifying for a conventional loan, but the basic process and criteria are much the same.

What is more, you do not necessarily need to plan to pay higher interest rates on a jumbo loan. Your interest rates with jumbo financing could be just as competitive as they would be if you obtained a conventional mortgage.

Apply Now for a Jumbo Mortgage in Phoenix

Do you qualify for a jumbo loan in Phoenix or elsewhere in Arizona? Please contact us now at (480) 470-1080 to ask your questions or apply. We’ll make sure that you get the affordable financing you need to purchase your dream home anywhere in the states of AZ, CA, or CO.

FREE Jumbo Loan Rate Quote!