If you are shopping for an upper range home in Arizona, there is a chance that you will need to apply for a jumbo mortgage.
While many people associate jumbo loans with luxury properties, a surprising number of more modest homes may require them in high cost neighborhoods.
What is a Jumbo Loan?
A jumbo mortgage is one which exceeds the loan limits for Fannie Mae and Freddie Mac conforming mortgages.
A common misconception is that jumbo mortgages are much harder to qualify for and much more expensive than conventional loans.
But that is not necessarily the case when you go through a broker like Desert Springs Mortgage.
With our network of more than 45 lenders, we can bring you competitive jumbo mortgage offers.
In fact, we can connect you with a jumbo mortgage not just in Arizona, but also in California, Colorado, Oregon or Washington.
Do You need a Jumbo Loan in AZ?
To know whether a jumbo mortgage is suited to your needs, you need to familiarize yourself with the conforming loan limits for your county.
In Phoenix and other Arizona counties, these are the conforming loan limits:
If you need to borrow more than those amounts, you will require a jumbo loan.
What if you are shopping for a home in a high cost area in California, Colorado, Oregon or Washington?
The conforming loan limits for certain counties in these states are higher to reflect the higher cost of housing.
You will need to consult the loan limits for the county in question to know what type of mortgage you need.
If you need help looking up the loan limits, we can help you do so during your consultation.
Qualifying for a Jumbo Mortgage in Arizona
Eligibility for a jumbo loan is more competitive than eligibility for a conventional loan. Nevertheless, it may be easier to qualify for a jumbo mortgage than you think.
You will need to have a high credit score and low DTI ratio to qualify for a jumbo mortgage with competitive rates.
You need to be able to afford a higher down payment as well, usually in the range of 15% to 30%.
At a minimum, you should be able to document that you have six months of cash reserves.
It is common to need to get a second appraisal on the property you will be financing with the jumbo loan.
If you need advice for meeting any of these requirements, we can provide you with guidance during your consultation.
Apply Now for a Competitive Jumbo Loan
To find out whether you need a jumbo loan, or to apply for a jumbo mortgage in Arizona, California, Colorado, Oregon or Washington, please give us a call today at (623) 432-1309 to schedule your consultation. We look forward to connecting you with a jumbo mortgage which features competitive rates and terms.