Some homes cost more to buy than you can borrow using a conventional conforming loan. You can borrow above the Fannie Mae and Freddie Mac conforming loan limits by taking out a jumbo mortgage.
What is a Jumbo Loan?
A jumbo loan is a type of conventional loan, just like a conforming loan. That means that it is not backed by a government agency.
What makes a jumbo loan different from a conforming mortgage is that it does not conform to the Fannie Mae and Freddie Mac loan limits. That is why it is also called a “non-conforming loan.”
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Today's Jumbo Loan RatesDo You need a Kentucky Jumbo Loan?
To know whether you will need a jumbo mortgage to buy a home, you need to figure out if the amount you want to borrow is within or outside of the conforming loan limits for your county.
These are the conforming loan limits for Jefferson County, where Louisville is located:
1 UNIT
$726,200
2 UNITS
$929,850
3 UNITS
$1,123,900
4 UNITS
$1,396,800
Throughout the state of Kentucky, these loan limits apply. In some states, there are high cost areas where the conforming loan limits have been raised to match. So, if you are shopping for a home in one of those high cost areas, you will be able to borrow more with a conforming mortgage.
Qualifying for a Jumbo Mortgage in KY
When we assess your eligibility for a jumbo loan, we look at factors such as:
- Your credit score.
- Your debt-to-income (DTI) ratio.
- Your income.
- Your employment.
- Your ability to make a down payment.
- Your cash reserves.
You are going to need to be able to make a larger down payment for a jumbo mortgage than a conforming loan. Around 15% is the minimum. Two appraisals are also often necessary.
One thing that is not a jumbo loan requirement is having purchased a home before. You can use a jumbo mortgage as a repeat or first time homebuyer.
Apply for a Jumbo Loan in Louisville or Beyond
You can apply quickly and easily for a jumbo loan by working with the friendly loan experts at First Fidelity Mortgage, Inc.
Please give us a call at (502) 657-4299 to schedule your consultation. We can help you buy a home with a jumbo loan in Kentucky, Tennessee, Indiana and Florida.
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Today's Jumbo Loan Rates
