At Max Mortgage, we have a number of different loan options that will be perfect for you. Whether you are buying a home for the first time, relocating, up sizing or down sizing, our team would love to work with you and assist you in any way that you may need. We pride ourselves in helping our customers achieve their dream of home ownership. That is why we offer a number of different options that you can choose from that will be perfect for you in purchasing a new home. In this article we will discuss the value of the Oklahoma jumbo loans. If you wish to hear more details or have any questions please give our team a call at 405-601-1920.
Before getting into the details of the Oklahoma jumbo loans, the loans must first be defined. Simply put, a jumbo loan is a loan that exceeds a maximum loan amount. More specifically, jumbo loans are designed to help you when your loan amount exceeds those amounts that have been established by federal government organizations. These organizations include Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac have established the conventional loan limits. A jumbo loan is still a conventional loan, but it exceeds the conventional loan limits. Call our team to learn more about the specifics.
The first important thing about Oklahoma jumbo loans to be aware of are the rates. The rates on jumbo loans are usually higher than rates on other loans. More specifically, the Oklahoma rates on jumbo loans are usually much higher than conforming loans. The reason why they are higher is because these loans are often used to buy very expensive homes. The homes can sometimes be worth millions of dollars. They also often require high-end custom construction to the homes as well.
The two main reasons why you would purchase a jumbo loan is because your home is very expensive or it requires high-end custom construction. The reason why someone would use Oklahoma jumbo loans to buy a very expensive home is because jumbo loans are able to exceed conventional loan limits. There been conventional loan limits established by Freddie Mac and Fannie Mae in a jumbo loan is able to bypass these limits. In addition, moving into an expensive home typically requires high-end custom construction and renovations. The jumbo loan allows for people to cover the cost of these high-end custom renovations.
There is another important aspect of jumbo loans that people need to consider before pursuing them. Typically, Oklahoma jumbo loans will require the person purchasing the loan to make a higher down payment. Traditional loans do not require higher down payments but jumbo loans always do. Conventional loans may require a minimum down payment as low as 3%. This is because people purchasing conventional loans often do not have as much money to put down towards the down payment. On the other hand, a jumbo loan typically requires people to put down a payment of at least 20%. This because the loan amount is much higher and there’s more risk involved for the lender.
Another important aspect of Oklahoma jumbo loans to remember is that higher FICO scores are required. A lender requires a higher FICO score because the lender is lending a higher amount of money. Higher FICO score will ensure that the person purchasing the loan has a good credit history and will be able to repay the loan consistently. A person who does not have a high FICO score are more than likely to have a less than stellar credit history. The reason why someone does not have a high FICO score is because they have either gone into more debt as a percentage of income required for a high FICO score, have missed payments, or have had a number of different credit inquiries. There are many different aspects that affect the credit score that our team would be open to discussing with you.
Another very important thing to remember with Oklahoma jumbo loans is that mortgage insurance is not available to cover that large of a loan. Because the loan amount is so much higher, insurers do not want to put themselves into that much risk in their insurance coverage. Mortgage insurance is designed to protect the lender in case you run into a difficult time while carrying a mortgage. But, because jumbo loans are designed for those who have a higher amount of money and can afford more extensive homes, mortgage insurance is not available so the loan has to have an 80% or lower loan to value.
There are also other types of loans that we offer here Max Mortgage. This includes the Oklahoma FHA 203K loans, Oklahoma FHA loans, and most other types that home owners may need. Please note that the Oklahoma FHA 203k loan is not a loan to buy a home but rather if you have a home that requires repair and home improvement construction work. If you like to learn more about this loan or other mortgage-related loans, then please give our team a call today by dialing the number below. We would love to assist you with anything that you may need.
If you feel like a jumbo loan is a great option for you, and give our mortgage company a call today. We also love to help you with any other loan needs that you may have. We offer a wide range of loans and can find one that will be perfect for you. You must though consult with our team and ask for guidance if you’re unsure which loan may be right. Jumbo loans are typically designed for people who can afford more expensive homes and have a higher amount of down payment to put towards the home purchase.
Oklahoma jumbo loans allow Oklahomans to more easily sell their million-dollar plus homes. To review, jumbo loans are loans that exceed established loan amounts established by Freddie Mack and Fannie Mae which at this time are 417,000. The rates on jumbo loans are typically higher than other loans because they are designed for more expensive homes. Give our team a call today in order to learn more about these loans.
You can reach us by dialing 405-601-1920.