Conventional & Jumbo Loans
A conventional loan is any mortgage not attached to federal support through the various programs supplied by the Department of Veterans Affairs, Farm Service Agency or Department of Housing and Urban Development. These programs, such as Federal Housing Administration insurance, make a loan non-conventional by tying it to external factors. With a conventional loan, the factors involved in the cost of financing are directly related to the borrower's personal financial profile. The borrower's credit, income and ability to secure private insurance will be considered in order to determine the terms of the loan.
* Guidelines are typically stricter with respect to credit, credit-scores, and derogatory credit items. (Past bankruptcies, foreclosures, etc.)
* Property-guidelines are not as strict as for FHA, VA and Guaranteed Rural Housing.
The jumbo mortgage is a loan for an amount that exceeds the industry average for mortgages. As the name implies, these are very large loans. Currently, in the State of Indiana, any mortgage that is above $417,000 is considered a jumbo loan. If you are in Hawaii, Alaska, Guam, or the US Virgin Islands, the amount jumps to $625,000.
A jumbo mortgage is considered riskier than traditional mortgages. Because of this, you are going to have to meet credit criteria that are stricter than for a traditional mortgage. You will have to demonstrate that you have sufficient income to pay for this type of loan and you will need a very high credit score.
Jumbo loans should also expect to pay a higher rate of interest than with a conventional conforming mortgage. It is for that reason, Winterwood Mortgage Group has partnered with various lenders to help break up and defray the interest rate of jumbo loans while also maintaining relationships with competitive jumbo loan providers.
If you are at all interested in finding out more about Jumbo loans OR the standard Conventional loan program, please click the button below to get started today. We are standing by to help!