Do you need to borrow more money than you are able to using a conforming loan to purchase a home in Massachusetts?
If so, what you need is a jumbo loan.
What is a Jumbo Loan?
A jumbo loan is also called a “non-conforming” mortgage. It is one type of conventional loan, the other type being a conforming mortgage.
Conventional loans are simply mortgages that are not backed by a government agency like the FHA, VA or USDA.
For a conventional loan to be a “conforming” loan, it must not exceed the Fannie Mae and Freddie Mac conforming loan limits.
Mortgages for greater amounts than those limits are jumbo loans.
Do You Need a Jumbo Loan in Massachusetts?
To determine whether you should apply for a jumbo loan or a conventional conforming loan, you need to check the jumbo loan limits for the location where you are purchasing your next home. The limits are set by county.
Boston is in Suffolk County, MA. Here are the conforming loan limits for this county:
These conforming loan limits are the same throughout the state of Massachusetts. They also are the same in most counties throughout the US.
If the amount you want to borrow fits within these limits, you do not need a jumbo loan. Otherwise, you do.
Qualifying for a Jumbo Mortgage in Massachusetts
Applying for a jumbo loan is a lot like applying for a conforming loan. The qualification requirements, however, are a little more strict:
- Because you are borrowing a larger amount, you may need a higher credit score and lower DTI ratio to qualify for comparable rates.
- The down payment requirement generally is in the 15% to 30% range.
- You will need a minimum of 6 months of cash reserves.
- You may need to get two appraisals instead of one.
If you need help getting your credit score as high as possible before you apply for a jumbo loan, we can offer you personalized advice.
Apply Now for a Massachusetts Jumbo Loan
Style Mortgage works with a large network of lenders throughout Massachusetts. That means that we can connect you with a jumbo mortgage with a competitive interest rate and down payment requirement.
To apply now for the jumbo mortgage you need to purchase your Massachusetts dream property, please call us today at (508) 223-5206 to schedule your consultation.