A Quick Guide to Jumbo Loans for Colorado Residents

If you’re house-hunting in a luxurious neighborhood or you may be looking for a loan that is higher than usual, a jumbo loan is likely your best option. Also known as non-conforming loans, jumbo loans allow borrowers to get larger amounts that surpass the limits of most conventional loans from Fannie May and Freddie Mac.

Let’s take a look at the benefits and the qualifications you need to meet to obtain a jumbo loan in Colorado.

Advantages of Applying for a Jumbo Loan

Jumbo loans are designed to fund luxury properties whose purchase price is more than what conventional loans can provide. If you want to buy a home north of half a million dollars and you don’t have the savings to close the deal, a jumbo mortgage is right for you.

Here are additional bonuses for getting a jumbo loan:

More Cash

The number one reason home buyers choose jumbo loans is the chance to get more loan money to buy an expensive piece of property. This type of loan is usually availed by real estate investors who are looking to buy multi-unit properties.

Lower Interest Rates

Jumbo loans come with more competitive interest rates compared to conventional loans. Also, interest rates for jumbo loans have declined in these past years which makes them an attractive type of loan for those who have bigger loan amounts in mind.

Flexibility

There’s more than one type of jumbo loan! There’s a 30-year fixed-rate jumbo loan or an adjustable-rate for those who prefer this type. Enquire with one of our loan advisors to determine which jumbo loan is best for you. 

If you’re looking for a premium property and conventional loans can’t cover the costs, find out what the Boulder County jumbo loan limit is to find out if this is right for you.

How to Qualify for a Jumbo Loan

Jumbo loans in Colorado have stricter requirements than conventional or government-backed loans. On average, you need to have at least a 700 credit score, a 20% down payment, and a debt to income ratio of 45% or lower.

You’ll also be asked to submit two years of tax returns, 60 days of current bank statements, proof of liquid assets, cash reserves of up to 6 months’ worth of the mortgage payments, and proper documentation of other loans currently held.

Interested in Getting a Jumbo Loan in Colorado?

Have you found your dream home in Boulder County but lack the funds to complete the purchase? We have the solution for you! Get in touch with our loan officers to learn more about a jumbo loan by Castle Rock Mortgage.

We’ll help navigate you through the whole process and advise you on how to qualify for a jumbo loan.

 


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.