Jumbo Loans - Mesa, AZ
Stunning Mesa, AZ, is an incredible place to purchase a luxury home. Close to the hauntingly beautiful Superstition Mountains, it’s an outdoorsman’s paradise – as well as a thriving city very much on the up and up. The expanding Great Park in the ritzy Eastpark neighborhood even means you don’t have to go far to enjoy stunning Southwestern sunsets and plenty of outdoor fun.
Whether buying an investment property or a high-end family home, qualified buyers can make their wildest dreams come true with jumbo loans.
Jumbo loans are those above the conforming loan limits set by the Federal Housing Finance Agency: in 2023, this limit is $726,000. There are many benefits to jumbo mortgages, but the most essential one is that they allow those with excellent financial health to purchase a larger and more luxurious property.
No matter what you choose, District Lending is here for you throughout the jumbo loan process. We’ll match you to great lenders, explain all your loan options, and be sure you’re fully informed before signing any paperwork.
AZ Jumbo Loan Options
Like conforming loans, you have a couple of options regarding the interest rate on your jumbo loan.
Fixed-Rate Home Loan
With a fixed-rate jumbo loan, your interest rate will remain the same throughout the life of the loan. This makes it easier to predict your monthly payment and is perfect if you open your loan when rates are low.
Adjustable-Rate Home Loan
With this loan, your interest rates will fluctuate as the market change. This is an excellent choice if you’re purchasing an investment property, as they are often cheaper at the beginning of the loan.
What Do You Need to Qualify For a Jumbo Loan?
Remember – jumbo loans are not guaranteed by Fannie Mae and Freddie Mac, so the lender bears much of the burden if a borrower defaults on their payments. Lenders employ stricter requirements when handing out jumbo loans to avoid losing money, including the following.
Down Payment of 20%
While some lenders will accept less than 20% down, most want a sizable down payment. A 20% down payment also means you don’t need private mortgage insurance, also called PMI.
If you have significant cash savings, this shouldn’t be an issue. However, if a jumbo loan would deplete your savings account, it might be best to shop for a home loan within the conforming loan limit.
Financial Health
For jumbo loans, lenders will take a closer look at your finances. To qualify, you typically need a lower debt-to-income ratio (DTI) and higher cash reserves than for other loans. Lenders will also require more thorough appraisals to ensure the home is correctly priced for the loan.
720 Credit Score or Higher
With a jumbo loan, lenders want to see credit scores of about 720 or above, which is significantly higher than the 620 score you need to qualify for a conventional loan. Though some lenders will accept credit scores that are lower than 720, you will likely have higher interest rates to compensate for the additional risk.
Interest Rates and Closing Costs
Relative to a conventional loan, the interest rate for a jumbo will typically be about 0.25% to 1% higher. Remember to factor this into deciding whether to take out a jumbo loan.
You’ll also need cash reserves for the closing costs, which are a modest percentage of the whole loan, along with cash for the down payment. Closing costs compensate those involved in the closing process, including lawyers and title companies.
The District Lending Difference
Free Quote
Want to know if you qualify for a jumbo loan in Mesa, AZ? We’re happy to help. Request a free, no-obligation quote so you can shop around and get a better idea of how much you can afford without any pressure.
Pre-Approval
Our fully online pre-approval process lets you get pre-approved for a jumbo loan in days, not weeks.
Mortgage Calculator
You can get a better idea of what your jumbo mortgage monthly payment will be with our convenient mortgage calculator. Play with different interest rates and down payment amounts to budget before talking to one of our loan officers.
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