Conventional Jumbo Loans
The FHFA has announced that the maximum conforming loan limit for 2018 is $453,100. Most of the time, home buyers can acquire a property at a price less than the value of the loan limit. This is not always the case, however. Jumbo Loans Texas options are designed to help property buyers purchase a home that exceeds the value of the loan limit
How Much Can I Afford with Traditional Jumbo Loans?
Loan limits are typically defined as “the amount a qualified borrower may be able to obtain without making a down payment.” It is possible to exceed traditional loan limits if a home buyer is willing and able to make a down payment. The amount of the down payment depends on how high above the loan limit a consumer needs to go to secure enough funds.
Property buyers are typically expected to make a down payment valued at 25% of the difference between the selling price of the home and the loan limit. If a consumer, for instance, wishes to purchase a home for $600,000 then how does it work? Using a jumbo loans Texas option, we start with the difference between the loan limit and the property value.
In this case the down payment is at least $36,725. The formula for getting this value is .25 x $146,900 (the difference between the home value and the loan limit) = $36,725. Typically, this would be less than the required down payment for a conventional home loan. Though the required down payment may deter some borrowers, there are still many benefits to using a traditional jumbo loans Texas mortgage.
Providing a Second Jumbo Mortgage Option
There is now an alternative to conventional jumbo loans. For 2018, the FHA loan limit ceiling has been raised to $679,650. This will come as a relief to many property buyers who are looking to purchase high-value homes in Texas. There are several advantages to taking out a second mortgage, such as covering part of the down payment on the first mortgage.
Advantages of Traditional Jumbo Loans Texas Mortgages
The benefits of using jumbo loans Texas-mortgage options are numerous. Borrowers with a strong financial record can capitalize on opportunities to make lower down payments. In some cases, the down payment can be less than 10%. It is also possible to use some creative options to procure a second mortgage.
Using a traditional jumbo loan, home buyers can borrow more than they could with a typical FHA or VA loan. This way, they have the opportunity to get into a home that they traditionally would not have access to.