Jumbo Loans When a Regular Mortgage Isn’t Enough

A jumbo loan is a type of mortgage that is used to finance properties too expensive for conventional conforming loans. According to the Federal Housing Finance Agency (FHFA), the maximum amount for a conforming loan is $510,400. Homes that exceed the local conforming loan limit require a jumbo loan.

To find jumbo loan options in your area, search online for a “Jumbo Loan Near Me.”

Jumbo loans are also called non-conforming conventional mortgages. These mortgages are considered riskier for lenders because they aren’t guaranteed by Fannie Mae and Freddie Mac. In other words, the lender is not protected from losses if a borrower defaults.

Jumbo loans can be offered at both fixed and adjustable interest rates. They also come with a variety of terms.

There are many details to consider when applying for a jumbo loan.

Qualifying for a jumbo loan

As previously mentioned, jumbo loans are larger and riskier for lenders. This is why the underwriting criteria for jumbo loans can be stricter.

• Credit score

To qualify for a jumbo loan, lenders may require your FICO score to be higher than 700. Sometimes, it may have to be as high as 720.

• Debt-to-income (DTI) ratio

To ensure you don’t become over-leveraged, lenders will also look into your debt-to-income (DTI) ratio.  Some lenders have a hard cap of 45% DTI. It is important that you reduce your debt, especially credit card debt, to keep your DTI lower.

• Cash reserves

Of course, some lenders may be more flexible if you have solid cash reserves. You may even use these reserves to cover a year of mortgage payments.

• Documentation

You’ll need extensive documentation in order to prove your financial health. You need to hand over your full tax returns, W-2s and 1099s when applying. You will also need to provide bank statements and information on any investment accounts.

• Appraisals

There is even a possibility that some lenders may require a second appraisal of the home you plan to purchase. In these cases, lenders may dispute the value of the property.

Jumbo loans vs. conforming loans

The key difference between a jumbo mortgage and a conforming loan is the size of the loan. It is important to contact the Best Mortgage Brokers In Philadelphia to learn more.

The main factors that differentiate jumbo loans from conforming loans are as follow:

• Larger down payment

Conforming loans may require smaller down payments, whereas jumbo loans are more likely to require down payments of at least 20%. Although some lenders may go as low as 10%.

• Potentially higher interest rates

Depending on the lender and your financial situation, Jumbo mortgage rates may be slightly higher than those of conforming loans. Even so, a number of jumbo loan lenders can offer competitive rates.

• Higher closing costs and fees

Jumbo loans typically have higher costs due to their extra qualifying steps and wide value range.

Below are some of the ways to get the best jumbo rates. Have a look:

1. Be sure to have a qualifying credit score and loan-to-value (LTV) ratio
2. Do not forget to research and compare interest rates
3. Look for alternatives that don’t involve lowering your price range
4. Opt for a bigger down payment or an 80-10-10 loan
5. Compare annual percentage rates (APRs) from at least three lenders

If any of this is confusing, do not be concerned. You can always contact a top-rated mortgage broker to help you. Feel free to consult Latitude Financial about any Mortgage Loan Bucks County can offer. Our experts have dealt with every type of loan and loan condition(s). As one of Pennsylvania’s most experienced mortgage brokers, Latitude Financial provides loans for new home buyers, investors and property owners of various real estate projects.

You can call us at 215-600-1810 to learn more about our services and speak with one of our brokers. We are just a phone call away. Call us today!

Three Common Questions About Mortgage Brokers

Have you narrowed down your list of potential homes? Do you have your heart set on the house of your dreams? If so, you’ve reached the next step. Now, it’s time for you to find the mortgage broker right for you. According to industry experts, mortgage brokers can make the home buying process more efficient and cost-effective.

However, finding the Best Mortgage Brokers in Philadelphia isn’t always easy. There are so many options available. You want a broker who is experienced and honest. You want a professional who understands your needs, and the needs of the market. 

In case you’re unfamiliar with the term ‘mortgage broker,’ you’re not alone. Brokers play an important and unique role in the home financing process.

Here are several important questions you should ask:

1.      What is a mortgage broker?

2.      Do I need to hire a mortgage broker?

3.      How do I choose a reliable and efficient mortgage broker?

If you aren’t sure about the answers to these questions, don’t worry. There are many factors to consider. Let’s explore these topics further.

1. What is a mortgage broker?

Mortgage brokers are professionals who act as middlemen (or women) between the loan applicant and potential loan lenders. A broker’s prime responsibility is to find the best lender for the applicant. Depending on the loan applicant’s needs, choice of property, budget, and other factors, a mortgage broker may find the best fit.

2. Do I need to hire a mortgage broker?

Every Mortgage Loan Bucks County offers may differ. Some loans have higher interest rates. Some loans are for more expensive or less expensive homes. Some loans are even based on the area of the real estate. Having an efficient mortgage broker by your side can make this process easier.

Latitude Financial is one of many reliable, efficient, and experienced mortgage brokers in Philadelphia. We manage clients seeking all kinds of loans. You can contact our experts about jumbo loans, renovation loans, FHA loans, VA loans, USDA loans, refinancing needs, and many other relevant financing options. 

As reputable mortgage brokers in Pennsylvania, we work hard to deliver our clients the mortgages they seek. We are dedicated to full compliance. Whether it’s the interest rates or loan tenure, we always abide by industry standards.

Moreover, our mortgage experts do a lot of the legwork for you.

We can:

• collect documents
• check credit histories
• analyze loan limits
• verify employment and income, and
• coordinate with lenders to get you approved

3. How do I choose a reliable and efficient mortgage broker?

There are numerous advantages to working with a mortgage broker. A significant percentage of loan seekers prefer mortgage brokers over banks. Brokers have relationships with many loan lenders, which can make it easier for you to get the loan you need.

Some brokers can get you a loan, even if your credit score is not great.

In the end, brokers can help you save plenty of money, time, and energy. Unlike loan officers, brokers work independently and are not employed by a given financial institution.

The best broker for you is someone who can help with the loan you need. If you’re unsure what loan you need, your broker should know. Simply search online for “Jumbo Loan Near Me,” and connect with Latitude Financial today. We can help with all types of loans, loan programs and client needs.

You should never settle for an unreliable mortgage broker in Philadelphia.

At Latitude Financial, we are experienced experts of the industry. You can tell the difference by our:

•        Approach toward clients

•        Communication style

•        Knowledge of the loan lending process, and

•        Preparation of your loan application

Give us a call today and let’s consult about your upcoming loan!

The Do’s and Don'ts of Applying for Mortgage

A house is one of your most significant assets. Although finding the home of your dreams may be easy, buying that home is often not. Securing a Levittown PA Mortgage involves many factors.

There are certain factors you must consider before applying for a mortgage. Your income and credit history are highly important to the loan process.

Before you register your mortgage application, consult with a professional. Financing the home you want may require a deep understanding of the mortgage system. At Latitude Financial, we can help you gather the information you need. Our experts can even guide you from beginning to end.

Things You Should Do Before Applying For Mortgage


Have All The Documents In Place – When you apply for a mortgage, most lenders ask for specific documents. This set of documents almost always includes your recent tax filings (usually two years), bank account statements, etc.

If you have had large deposits or withdrawals recently, you will need to have documents to explain them.


Learn About Your Market – In many cases, the type of loan(s) you need is related to your home market and the home itself. For example, in Florida, many lenders have stricter standards      because numerous condominium projects have gone bankrupt.

These rules vary from state to state. It is best to seek help from a real estate professional to understand the local lending standards. Certain types of properties may carry significant risks. As a Mortgage Broker Southampton PA trusts, we understand these different criteria. With our expertise, you can head in the right direction.


Things You Should NOT DO Before Applying For Mortgage

 Don't Make Large Purchases On Your Credit Card – If you want to apply for a mortgage, avoid large credit card purchases. We understand that you may want to furnish your new home with new furniture. We understand you may want a new car. However, we caution against these      purchases. 

There is a simple reasons for this. Big credit card purchases raise your debt-to-income (DTI) ratio. This can lower your credit score and reduce your likelihood of getting a loan. However, you can certainly use your credit card as usual. Small purchases are fine, as long as you pay them off on time. You must show that your DTI ratio is stable and that you do not overspend.

 Don't Close Credit Accounts, Even If You Don't Need Them – When planning to apply for a mortgage, it is best not to close any of your credit accounts. When you close a credit account, it sets off a chain reaction. This reduces your available credit and raises your debt to income (DTI) ratio. This can put your mortgage loan at risk.

While it may seem like a great idea to close inactive credit accounts, it is not a good idea for mortgage loan applications. If you wish to know more about how credit accounts can affect your mortgage plans, our Mortgage Broker Southampton PA experts can help.

 At Latitude Financial, we help with all types of loans. If you need a USDA Mortgage Philadelphia loan, we can help. If you need FHA loans or VA loans, we can help. We are always willing to assist our clients, whether they are new home buyers, investors, or property owners for various real estate projects.

 If you need help or wish to know more about our services and offers, get in touch at 215-600-1810 or write to us at info@latitudemortgage.com.