Jumbo Home Loans
Denver / Lakewood: Jumbo home loans in Colorado are designed for loan amounts above the conforming loan limits in each county. The guidelines for this type of loan can be tricky and vary between banks, so it is very important to work with a lender who knows the nuances of jumbo guidelines.
With our prime location by the foothills west of Denver, we work with Jumbo buyers every day, and specialize in helping luxury home buyers who need financing for higher loan amounts.
What is a Jumbo Mortgage?
A jumbo home loan in most counties is any loan that is greater than $510,400*. However, there are some “high balance” counties in Colorado which are listed at the bottom of this article, or you can follow this link to the Fannie Mae Conforming Loan Limits. High balance counties allow for “conforming” rates (non-jumbo) above $510,400 and up to the county limit.
Are home loan rates higher on Jumbo Mortgages?
Not necessarily! Currently, we have jumbo rates available that are lower than traditional mortgages. This has not always been the case.
What are the qualifying guidelines for a Jumbo Home Loan in CO?
Stricter guidelines can make Jumbo mortgages more difficult to qualify for than conforming loans. First of all, you must have good credit. Most lenders have a minimum credit score that is higher than a conventional loan and for programs with less down payment, the minimum score is usually higher.
Your down payment can be as low as 10%, but rates and terms improve with more down payment, generally 20%, 25%, and 30% down will get you a better deal. If you plan to obtain a 2nd mortgage, or HELOC, that loan must also be counted in the loan-to-value ratio, which is also referred to as combined loan to value ratio.
Debt-to-income ratios are generally capped in the 41-43% maximum range, but there are some programs that allow up to 50% DTI.
You must be able to prove your income through tax returns, or W2s, or both. Non-traditional income programs are not available at this time.
What kind of loan programs are available?
Fixed or adjustable rate loans are available. ARMs with as long as a 10 year fixed period are available and even ARM terms of 15 years fixed are available for some types of home buyers. Fixed rates are typically 15, 20, or 30 years.
Here are the Colorado Conforming Loan Limits 2019 (High Balance is any loan above $510,400 up to these limits).