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Jumbo Loans: The Jumbo Loan Requirements For 2022

Now it’s easier than ever to refinance or buy your new home between $647,200 and $2.5 million.
"What Makes Jumbo Loans Stand Out?"
  • The maximum amount you can loan is now $2.5 million. It was previously $2 million).
  • Borrowers could previously only finance primary residences and second homes, but now they can finance investment properties, as well.
  • All we need is one appraisal, in most scenarios.
  • Now, your DTI, or debt-to-income ratio, can be as high as 45% (which is higher than the previous 43%).
  • Your LTV, or loan-to-value ratio, can be as high as 89.99% (significantly higher than the previous 80%).
  • The FICO® Score minimum is now at 680 (previously it was at 700).
  • Second homes and investment properties (previously only for primary residences) can now get a cash-out refinance.
  • If you’re self-employed, you don’t need to provide us with as many documents as before.
  • You can easily apply online these days, since there are fewer requirements.
"How Do Jumbo Smart Loans Work?"
  • Jumbo Smart loans are ideal for those who are looking for a property, and need to obtain a loan for more than $2.5 million. These larger loans are often referred to as jumbo loans.
  • Jumbo loans are also referred to as nonconforming loans because they’re over the limit for conventional loans. Nonconforming loans also don’t fulfill Freddie Mac’s or Fannie Mae’s purchasing standards.
  • The conventional loan limit in 2022 is $647,200 in most US areas. However, in several high-priced areas, the loan limit will be $970,800. It is crucial to have a look at the exact conforming loan limits in your area.
  • Are you in need of a loan greater than the conventional loan limit can provide? If so, a Jumbo Smart loan may be the perfect option for you.
"What Will I Need To Qualify For This Jumbo Smart Loan?"
  • A down payment over 10%.
  • A FICO® Score of 680 or better.
  • A DTI, or debt-to-income ratio, equal to or lower than 45%*. 
  • Enough cash to cover the costs for closing, at around 2 – 6% of the property’s purchase price.
*You can calculate your DTI by:
1. Adding up your monthly debt payments (for example credit card and/or car payments).
2. Divide the total amount by your monthly income before taxes. You need that number to be under 45% to qualify for a Jumbo Smart Loan.
"What About The Jumbo Loan Rates, How Do They Compare To Other Kinds Of Mortgages?"

In contrast to other financing options, jumbo loans do not necessarily carry higher interest rates. Lenders base jumbo interest rates on the amount of your down payment, your credit score and various other factors.

The Top 6 Jumbo Smart Loan Benefits
  • Compared to the previous jumbo loans, the requirements for obtaining this loan are substantially lower. The process is now much simpler and can be done online.
  • You can buy your new home with a down payment over 10%.
  • You won’t be required to have mortgage insurance, unlike most conventional loans, even if your down payment is less than 20%.
  • Jumbo mortgages can be applied to primary homes, secondary homes and any investment property located on 20 acres or more.
  • You can get a 30-year fixed interest for your Jumbo Smart mortgage. 
  • Jumbo Smart loans can be obtained for both 1- and 2-unit homes.
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Take your first home loan step with Crown Mortgage of the West.

Call us now to get personalized recommendations about Jumbo Loans, or to discuss different options.

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Advantages Of Getting A Jumbo Smart Loan From Crown Mortgage of the West
  • Apply online and work at whatever pace is convenient for you.
  • Home Loan Experts are available via phone, chat, and to assist you in getting the Jumbo Smart loan that fulfills your financial needs.
  • We won’t charge you to make any mortgage payment online.
  • There are no prepayment penalties whatsoever if you decide to pay off your loan earlier than expected.
Why You Should Choose Crown Mortgage of the West
  • You’ll get access to an online application process, which saves you paperwork.
  • Our Home Loan Experts will be there to answer questions and concerns, and to help you get clear on all the details so you get the perfect mortgage for your needs.
  • After you’ve closed the home loan, you’ll be able to manage your mortgage online without any hidden fees.
  • You can expect customer service long after you’ve closed. You see, we service around 99% of all our mortgages.
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Keep the following in mind:

  • Mortgage rates are in constant flux.
  • Your actual mortgage payments will vary. This is based on your individual situation as well as current rates.
  • Certain products may not be available in every state.
  • Certain jumbo products are unavailable to first-time homebuyers.
  • Lending services are unavailable in some areas.
  • Certain restrictions could apply based on your location and situation.
  • Unless stated otherwise, we assume a refinance or purchase of a primary residence without a cash-out at closing.
  • Unless stated otherwise, we’ve assumed the following: all costs associated with closing are paid out of your pocket; it’s your primary residence and it’s a single-family home; your debt-to-income ratio (DTI) doesn’t exceed 30%; your credit score is greater than 720 (for certain jumbo products, we assume a credit score of 740 or higher.
  • You have a 40-day lock period for your mortgage rate.
  • If LTV > 80%, PMI will be added to your monthly mortgage payment, with the exception of Military/VA loans (these loans don’t require PMI).
  • Keep in mind that we don’t have all the necessary information to make an accurate assessment if you don’t contact us. At Crown Mortgage of the West, we offer a wide selection of home loan options. Do you want more precise and personalized results? Call us at (805) 434-5226 right now, and speak to one of our mortgage experts.

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When you submit your contact information to us, you’re agreeing to our Security Policy, Privacy Policy, and Terms of Use. 

You’re also consenting to having Crown Mortgage of the West, our partner companies, and our Family of Companies, reach out to you about your inquiry through a text message or a phone call*. 

We’ll call the cellular or residential telephone number you’ve provided with us. We’ll do this even if your telephone number is on a corporate, state, or national Do Not Call Registry. You’re NOT obliged to receive such messages or calls as a condition of saying yes to our services, or the services of our affiliates. 

When you’re talking to us over the phone, you’re consenting to the call being monitored and recorded. You’re also agreeing that we can share the personal data and contact information you’ve provided with us. We can share this information with third parties, including our mortgage partners, affiliates, or partner companies. The stated parties are allowed to use your contact information and personal data for analytic and marketing purposes. They may also use the information to improve your experience.

*This includes an automatic telephone dialing system or a prerecorded or artificial voice.