Colorado Real Estate: Jumbo Loan-Ready
Bigger than regular mortgages, Jumbo Loans exceed the conforming limit or the maximum loan amount that Fannie Mae and Freddie Mac will buy, and that differs from state to state. For most markets, the conforming limit is $417,000. And so any loan above that is a jumbo loan.
Statistics from the Colorado Association of Realtors show that only in March this year, new listings for single-family homes and townhouses/condominiums surged across the state. The inventory list is still low as home sales increased, driving the median price rate higher, especially in the Denver metro area.
Getting a Jumbo Loan for a Colorado Home
See this chart for loan limits in Colorado.
How does one apply for a Jumbo Loan?
Firstly, it’s possible to expect making a down payment of 20% on the purchase (or 20 percent equity in a refinance). Income must be documented and verified. An adjustable rate loan rather than a fixed rate loan is applied. Also, it must be ensured that the monthly payment should not exceed 38% of income before taxes. If these qualifications are met, borrowers will find today’s rates very attractive.
Most counties in Colorado have a conforming limit of $417,000, so for loan amounts above the $417,000, a Jumbo Loan is required. Since the loan is insured by private groups outside of Fannie Mae or Freddie Mac, the risk is higher for lenders. Hence, jumbo loans require a larger down payment and often have higher interest rates.
Know the Benefits and Expectations of Jumbo Loans
If you are in the market for a home in Colorado, it pays to canvass for credible and experienced lenders or mortgage officers to assist you in your jumbo loan application. Colorado Lenders has several options for individuals, families and investors who would like to take out a Jumbo loan.
We have excellent options in Colorado and are further connected with smaller banks outside the state who portfolio their loans. When a bank portfolios their loans, it means they are not restricted to the average guidelines. Many scenarios that otherwise would not be possible become more likely to be funded. This has proven to be a great advantage to our clients.
Colorado Lenders has helped many clients seeking to secure loans that otherwise looked difficult to realize. The company has many excellent options for individuals and families looking for higher loan amounts to fund the property of their choice.
A Jumbo Loan is just what you might need. Let us help guide you through the maze of understanding this type of loan and the qualifying guidelines.