Ogden Mortgage Loans is a mortgage broker for jumbo home mortgage loans in Utah.
A jumbo mortgage loan is one way to buy a higher priced homes.
A jumbo mortgage loan is a residential mortgage loan that is bigger than the conforming loan limit in the county that the property is located in. The conforming loan limits are determined (set) by Fannie Mae and Freddie Mac. Loans that their loan limits are greater than the conforming loan limits are also known as non-conforming mortgages.
To view the conforming loan limits set by Fannie Mae & Freddie Mac for each county, go to: https://www.fanniemae.com/singlefamily/loan-limits
Jumbo mortgage loans are not guaranteed by Fannie Mae or Freddie Mac, which makes them riskier loans to the housing industry. So if a homeowner is to default, the loss is shouldered by the banks or the entity that owns the note and not by Fannie Mae nor Freddie Mac.
This, in turn, makes the pricing for a jumbo loan higher than a conventional loan.
Jumbo loans vs. conforming loans
The key difference between a jumbo mortgage and a conforming loan is the size of the loan. For a thorough look at the two and the pros and cons of each, read this article about the differences between conforming and non-conforming loans.
Among the other factors that differentiate jumbo loans from conforming loans:
Ogden Mortgage Loans offers Jumbo Loans up to 15 Million Dollars.
There is a sliding scale that varies the loan amount with the LTV (purchase or refinance) of the property.
The higher the loan amount, the lower the LTV is allowed.
Each persons LTV varies based on multiple different scenarios.
There are many different options pending on different factors that include:
- Loan Amount Desired
- Purchase price (If a purchase)
- Appraised value (if a refinance)
- Credit Score
- Cash Reserves
- Documentation Type (Full Doc, Tax Returns; Bank Statement Loan)
- Owner Occupied, 2nd Home, Investment property
- Property Type
- (Single Family, Du-Plex, Tri-Plex, Four-Plex, Condo, Town-Home)
- Cash-out (if a refinance)
Call us and we will help you find the right financing for your jumbo mortgage financing needs.
The minimum down payment required on a jumbo loan ranges from 10 to 20% down payment.
The best priced Jumbo Mortgages require 20% down, yet this is not always required and in some cases much more down is required.
For refinance Jumbo Loans, we offer both refinance and cash-out refinance Jumbo mortgages loans in Utah.
We can help you determine which loan based on your needs and what your credit score, cash available and other factors that will determine which loan to go with.
THe DTI (Debt-to-Income ratio requirements on Jumbo loans is different based on different loan products from different lenders.
Some lenders require a maximum of 40% DTI, some are 43% DTI, some are 45% and on Jumbo Non-QM loans the DTI can be as high as 55% for the back end debt ratio.
Like DTI’s having different requirements, the amount of cash reserves varies based on the jumbo loan product and the guidelines offered by different lenders and investors.
For the best terms on jumbo mortgage loans, 12 months of cash reserves is the typical requirement.
The more cash reserves that are required by a lender (investor), the better the terms can be offered and the less cash reserves required on a jumbo loan product will equal a higher rate.
Different Loans have different documentation requirements.
The typical jumbo loan requires a full doc loan term, which is: Tax returns for 2 years, W2’s & paystubs and/or 1099’s (If applicable).
Some jumbo loan programs allow for bank statements and do not require tax returns and any income documentation.
A second appraisal is required when the loan amount is 1.5 million or greater and in some cases greater than 1 million USD.
POTENTIALLY HIGHER INTEREST RATES
Jumbo mortgage rates are slightly higher than conforming (conventional) mortgage loans.
Each Jumbo loan product has different terms, which are based on fico scores, LTV, cash reserves, etc.
Areas in Utah that are popular for jumbo mortgage loans include: Park City, Deer Valley, Heber City, Midway, Salt Lake City, Draper, Sandy, North Salt Lake, Bountiful, Layton, Utah County, Provo, Highland, Alpine, St George, Huntsville, Eden, Liberty, Ogden, North Ogden, Pleasant View, South Ogden and other areas.