WHAT IS A JUMBO LOAN?

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A jumbo loan, also called a “non-conforming” mortgage, is for loan amounts that exceed the limits set by federally sponsored enterprises. Jumbo loans can be used for both purchasing a new home and refinancing an existing one.

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Jumbo loans are fairly common, but they differ from conforming loans because the lender—not Fannie Mae or Freddie Mac—sets the guidelines. These loans have different requirements since home prices vary widely across the U.S., even within states, cities, and neighborhoods.

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Conforming loans, on the other hand, follow regulations set by government-sponsored enterprises that buy or guarantee mortgages from lenders. This system helps lenders have more funds available for new loans and ensures fairness through uniform mortgage documents and national standards.

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While jumbo loans may carry a bit more risk than conforming loans, guidance from an experienced lender can help you navigate the process with confidence.

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How to Qualify for a Jumbo Loan

Like any mortgage, jumbo loans have specific qualification requirements. Key factors include:

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• Debt-to-income ratio: Typically below 43%

• Cash reserves: Proof of sufficient funds in the bank may be required

• Financial documentation: Full tax returns, W-2s, and 1099s, often more extensive than for a conforming loan

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Jumbo loans follow the same overall qualification process as conforming loans, even though the loan amount is higher.

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Why Choose a Jumbo Loan from LendComet?

LendComet offers jumbo loans designed to meet the needs of a wide variety of borrowers:

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• Loans up to 80% of the home’s value with a 20% down payment

• Fixed-rate and adjustable-rate options available

• Some programs allow down payments from gifts

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At PrimeLending, we understand that buying a home is a personal experience. High-priced homes don’t always mean a borrower is wealthy—housing markets vary greatly by location. A $500,000 home may be extravagant in a small Midwestern town, but modest in parts of California. Jumbo loans help borrowers purchase high-value homes in markets with above-average home prices, catering to diverse needs, budgets, and situations.

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