Jumbo loans Southern California

Over the last few decades many states in U.S have been seeing a hasty escalation in property expenses due to which Jumbo loans have become a necessity. The average value of a house in California is more than double the average values of homes in other enclosing states. Jumbo loans in Southern California grant a means for people to purchase highly valued property.

A jumbo loan is a mortgage with a loan amount above typical conforming loan limits. Conforming loan limits is the standard set by Fannie Mae and Freddie Mac, which are two government subsidized enterprises. These two firms set the limit on the maximal value of any mortgage they are inclined to buy from a lender. 

The interest rate and down payment requirements of Jumbo loan in California is little more as compared to other emblematic loan plans because of the level of risk associated with lending such huge amount of money to the people.

Qualifying for a Jumbo loan is not likely qualifying for any traditional conforming loan.

Whenever you are qualifying for a huge financing, there is definitely going to be a sizable monthly mortgage payment that the lender will want to be assured that you can afford over a particular span of time.

Documentation of the borrower also plays a critical role in getting a jumbo loan in California. The documentation should make sense as compared to the income stated on the application. It is important to be accurate and detailed in explaining what you do for a living, the tendency of continued employment and the fettle of the industry you are working.

The lenders may also look for other substantial debts that the borrower will managed to pay off positively in the given time. For a jumbo loan in California lenders basically look for high credit score and proof of a liable borrowing history.

Basically the overall borrower profile and supporting qualifying documentation has to make sensibility to the lender. The borrower’s lifestyle, credit history, high credit score and income potential should be related to the people who take on the liability of jumbo loan California. The lender also looks at the borrower debt-to-income ratio and the evaluated value of the property during the underwriting state.

Benefits of a Jumbo loan

  • Jumbo loan in California is more beneficial as compared to other emblematic loan plans because you don’t have to take two or three different loans to buy a luxury or highly valued property instead you can manage with just one loan plan.
  • There are differing rate programs available for borrowers looking for a Jumbo loan in California. The borrower can choose from fixed or adjustable rates which will implement the flexibility to structure the loan.

A positive rule to remember when you are trying to qualify for a California jumbo loan is to have your paperwork organized and a good explanation to all the questions that may derive potential questions by the lender about your capability to repay the loan over the restituted term.
Eric Gausepohl and Matt Gausepohl
NMLS# 371291 | NMLS# 328382

Huntington Beach Location
2130 Main Street Suite 110
Huntington Beach, California 92648

Temecula Location
28581 Old Town Front Street, Ste 108
Temecula, CA 92590