Living in Arizona can be an absolute joy. Millions of residents have fallen in love with this region, especially the city of Phoenix and the surrounding area. Owning your dream home in Phoenix could be the next major milestone in your life and the life of your family.
At District Lending, we understand that affording a home can be difficult, especially if you are facing a larger purchase price.
What is a Jumbo Loan?
What do "Conforming" and "Conventional" Mean?
Defining Non-Conventional Loans
Non-Conforming and Conventional
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Do You Qualify for a Jumbo Mortgage?
Down Payment Requirement
A conventional loan typically requires at least a 3% down payment for a borrower to have a chance of qualifying. Jumbo loans have much higher down payment standards because of the higher risk and no backing from another entity. In Phoenix, you will likely have to cover a 20% down payment to have a shot at acquiring jumbo loan amounts. If you do not have enough liquid assets for sizable down payments, then jumbo loans in Arizona may be out of your reach.
Credit Score Minimum
Unreliable borrowers are a big no-no for lenders. If your credit score does not reflect a strong history of paying back your debts, then your application will be rejected by the majority of lenders. Residential mortgages that are under the maximum limit can be acquired with credit scores of 620 or more, but a jumbo mortgage will only be achievable with a credit score of 700 or above.
Low Debt-to-Income Ratio
Your debt-to-income ratio (DTI) is a percentage that reflects how much debt you have compared to your monthly income. The lower your DTI, the less risky of a borrower you are. A DTI of 50% or less is usually enough for most loans. However, jumbo loans might only be granted to those with a maximum DTI of 36%.
Learn More About Jumbo Loans From District Lending
Want to ask questions about our jumbo loan programs? Curious about what interest rates you might be eligible for with jumbo mortgages? Concerned about how multiple property appraisals may affect your single loan status? Worried that your income or credit scores may scare off lenders? You can rely on just one lender to know all the answers; District Lending.
We have helped thousands of borrowers in the Phoenix area figure out how to acquire jumbo loans so that their loan amounts are enough to cover larger purchases. Let’s work together to make a payment plan that works for you, whether it is a jumbo loan, an FHA loan, a VA loan, or a traditional mortgage.
While the stringent requirements may vary depending on the lenders you choose for your home loan needs, District Lending can help you secure the right mortgage with multiple loan programs. We make the jumbo loan process easy so that you can be a competitive buyer in the Phoenix market.