Flower Mound Jumbo Home Loan Information

Looking for the basics on a single unit, primary residence, jumbo mortgage in Flower Mound, or the surrounding Dallas area?

If you are buying a home, and your primary loan is greater than $417,000, you will be bumped out of the “conforming” loan products to the jumbo world of financing.  Interest rates on Jumbo Mortgages are always slightly higher than conforming, so many folks buying a home in the sale price range of $450,000 to $600,000 will either put down enough money to avoid the higher rate of the Jumbo Mortgage or they will do a combo loan structure.

Fast Jumbo Mortgage Process

Underwriting for the Jumbo Mortgage is sometimes a little more involved, depending on the scenario.  On the other hand, it’s not so involved that you should have to wait more than 25-30 days to get your loan process completed.  In today’s Real Estate market, your ability to close on a home fast is a negotiating variable as you offer bids on homes.  So, if your lender is quoting a turn-time greater than 30 days to process your loan, find another option.  The mortgage rate market is a little different today than it was in the early 2000’s and before then.  From one lender to another, rates do not deviate that much, so find a mortgage lender that can offer you the service you deserve, the faster process you deserve, and a competitive rate.  Our turn-times today are 25-30 days, and upon rare needs for emergency closings, we can sometimes accommodate even faster closings.

Combo Loan To Stay Out of Jumbo Mortgage Financing

Lets say you are buying a home with a sale price of $520,000, and you only want to put down 10%.  If you use a combo loan structure, you can accomplish 2 things that help your financial situation;  1. you can avoid mortgage insurance, and 2 you can stay in the conforming loan world with the better rates.  The structure of this loan would be a 1st lien of $416,000 (below that maximum of $417,000 conforming limit), and a 2nd lien of $52,000.  This combo structure can be used in various ways.  If you have more questions about how it my benefit your unique situation, call me.  Lastly, most best of the best Jumbo Mortgage rates are tied to Jumbo Programs that only allow 80% total loan to value.  So, this combo loan structure helps you get your primary loan under that maximum loan amount and still have the ability to put down as little as 5%, if you so choose.  See older post regarding similar details about Jumbo Financing.