Are you interested in buying a home that has an above average and expensive price tag that a traditional loan will not cover? If you meet specific criteria, you could qualify for a super jumbo loan to finance your dream home. If you are interested in purchasing a home and need a non-conorming loan to assist you in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today. Our loan professionals can work together with you to determine your eligibility and the loan option that is most suitable for you.
What Is a Super Jumbo Loan?
A super jumbo loan is a mortgage for a large amount that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, and also has loan limits that surpass a “jumbo” loan classification. Fannie Mae and Freddie Mac are government-sponsored organizations that provide liquidity to the housing market by buying mortgages from banks and private lenders, repackaging the loans, and then reselling them to other investors. Fannie Mae and Freddie Mac also establish the loan limit for conforming loans, which is currently set at $510,400. If a loan exceeds that amount, it is considered a non-conforming loan, or jumbo loan. Jumbo loans exceed the non-conforming threshold, but super jumbo loans go even further beyond jumbo loan limits. The criteria for super jumbo loans differ from various lenders throughout different regions of the country. In areas of the U.S. where housing is cheaper, super jumbo loans are typically $1,000,000 or higher, but in areas where housing costs are more expensive, the benchmark for a super jumbo loan will tend to be higher. Super jumbo loans can be used for residential or vacation homes, as well as investment properties.
How Do I Qualify For a Super Jumbo Loan?
Since super jumbo loans are a substantial amount of money, they pose a high risk to lenders, so they do have stringent requirements in order for a borrower to qualify. Some of the typical requirements for a super jumbo loan include:
- At least a 10%-20% down payment
- You must have good credit
- You will need to prove that your monthly income and assets can sustain the mortgage payments
- Be aware that some lenders only approve super jumbo loans if the property is you primary residence
- It is important to note that interest rates tend to be higher if the amount borrowed is a large amount, as is the case with super jumbo loans
Getting Assistance With a Super Jumbo Loan
If you have your eye on a high-priced home, and are considering a super jumbo loan, contact Foundation Mortgage today. We serve clients in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee. We can help you locate your ideal property, and determine your eligibility for a financing option that works the best for you. Contact us today for a consultation.
