Business owners may have the desire to obtain financing for a new home. However, several financing hurdles may appear to work against entrepreneurs who want to buy a home. Fortunately, Internet Loans Direct offers competitive jumbo mortgage loans for self-employed borrowers.
About Jumbo Mortgage Loans
Whenever a borrower is searching for a home that is priced above one-million dollars with a nominal down payment, a jumbo mortgage is needed.
Mortgage lenders will allocate a larger portion of their available funds when issuing a jumbo home loan versus the amount that is typically funded for a conforming loan.
Additionally, larger loan sizes are often associated with more risks.
Therefore, some of the underwriting requirements and the mortgage rates for jumbo loans are priced slightly higher than conforming products.
What are the Jumbo Loan Limits?
The Federal Housing Finance Agency recently announced that $548,200 is the maximum amount that Fannie Mae and Freddie Mac may acquire a one-unit property for in 2021.
While the $548,200 loan limit is the ceiling for conforming loans in most areas of the United States, certain high-cost areas throughout the country may permit larger loan sizes.
Loan amounts that are above the $548,200 conforming loan limit for 2021 are recognized as jumbo mortgage loans.
What Credit Score is Needed for a Jumbo Mortgage Loan?
A credit score is a three-digit number that is generated using proprietary data from Experian, Equifax and TransUnion to help determine an applicant’s credit worthiness.
Lenders who offer jumbo mortgage loans will look at the highest and the lowest of the three scores, however, the middle score will be selected to represent the applicant’s average credit score.
According to Experian, credit scores for consumers can range between 300 and 850 points.
Credit scores for a jumbo mortgage loan will vary among lenders.
Although, applicants might frequently see a 680-credit score requirement for jumbo mortgage loans, a variety of loan programs will require lower or higher scores.
Lenders typically want to see favorable credit scores for borrowers who are unable to supply traditional underwriting documents.
Jumbo Mortgage Loan Requirements for Self-Employed Applicants
Applicants who apply for a home loan with a traditional job are generally required to provide a mortgage lender with W-2’s, recent pay stubs and tax returns for the past two years.
Self-employed borrowers may not receive regular paychecks or have the ability to provide a specific amount of wages that are sent via direct deposit.
Quite often, self-employed borrowers will write off an abundant amount of their annual earnings to reduce their taxable income.
Internet Loans Direct offers a wide variety of loan programs for self-employed applicants with favorable credit scores who want to buy a home using a jumbo mortgage loan.
Contact us today for more information about purchasing or refinancing a home.
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