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Jumbo /

Non Conforming Home Loans


What is a Jumbo Loan?

Another name for a jumbo mortgage is a non-conforming mortgage. This is a loan a lender makes you that doesn’t “conform” to the guidelines of Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac only buy mortgages meeting their guidelines for down payment, credit score, post-closing reserves, and loan amount. As of January 1, 2021 Jumbo loan amounts will start at one dollar higher than the conforming loan limit of $548,250.

Jumbo mortgages have the same overall qualifying methodology as a conforming loan. Lenders will look at your FICO credit score, down payment amount, total monthly debt obligations relative to your income (DTI), and cash reserves.

Typically, Jumbo lenders want to see 6-12 months of reserves after the close, half liquid (in a checking or savings account), and no more than half calculated from retirement assets. Reserve exceptions are available if your debt-to-income ratio is low and your down payment is high.


What are some of the benefits and requirements of a Jumbo Loan?

  • Jumbo Loans allow you to buy a home that is more expensive than the conforming loan limits.
  • Jumbo Loan Limits vary by state but you can typically finance up to 1.5 Million of your home purchase.
  • Jumbo Loans may require a minimum down payment of 10%.
  • Jumbo Loans will require mortgage insurance if your down payment is lower than 20%.
  • Although most jumbo loans max out at 43% DTI (Debt-To-Income Ratio). There are some exceptions where you may qualify with a higher DTI Ratio if you have compensating factors such as substancial cash reserves.

Our Closing Process

Step 1
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Loan Application

The application process takes 10-20 minutes and can be completed over the phone or through our secure website. We would prefer the opportunity to take your application over the phone, completing the application over the phone allows us to collect more information surrounding the needs and wants of your new loan.

Step 2
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Credit Check & Initial Disclosures

At this step we are going to pull your credit to verify that you can qualify for the loan. You will also receive your initial loan disclosures. These disclosures outline the type of home loan that you are applying for, repayment terms, your rights as a consumer, and our privacy policy.

Step 3
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Supporting Documentation

Your loan officer will be requesting the minimum documents needed to verify the information submitted in the application and begin verifying your income, assets, and liabilities. This information is used to confirm your DTI (Debt To Income) ratio and establish your assets and cash reserves.

Step 4
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Appraisal

The appraisal insures that the home you are purchasing is valued at the amount of money you are borrowing. If the home you are buying is under construction this appraisal will be based off the plans, and upgrades that you have selected. Upon completion of the home a "re-inspection" will be performed where the appraiser will verify that the home is completed.

Step 5
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Underwriting

Your loan officer and their assistant has submitted your loan for review by an underwriter. The underwriter is going to conditionally approve the loan based on the loan requirements and guidelines to insure the home loan. At this point the underwriter will establish a list of conditions for your loan team to complete before the loan can be cleared to closed. The Loan Officer Assistant and the Loan Processor will work with you to collect additional documents to support the information that is needed to clear each of the underwriters "conditions".

Step 6
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Approval

Upon satisfying all of the loan conditions your loan will change status from "conditionally approved" to "approved". The underwriter will hand your loan off to the closing department to begin the process of drafting closing documents and final disclosures for your review.

Step 7
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Clear to Close

Your loan is now ready for closing. You will receive the closing disclosure which details the final terms of the loan, the payment, the loan closing costs and the pre-paid expenses tied to your home loan.

Step 8
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Closing Day

You will attend the closing at the title company. At closing the title rep will present you with the final loan documents for you to sign. The entire process typically takes about 45 minutes to an hour and the title rep can explain or answer any questions you may have. Upon completion of signing these documents we will "release the wire" and the title company will give you the keys and disburse the funds to the seller and the Realtors involved in your transaction.


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Licensing Disclosure

Everett Financial, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2021. Not an offer or agreement. Information, rates, & programs are subject to change without prior notice. Not available in all states. Subject to credit & property approval. Not affiliated with any government agency. Supreme Lending is required to disclose the following license information: AZ Mortgage Banker License 0925918. Licensed by the Department of Financial Protection and Innovation under the CA Residential Mortgage Lending Act License 4130655. CO Mortgage Company – Regulated by the Division of Real Estate. Delaware Lender License 10885. GA Mortgage Lender License 22114– Georgia Residential Mortgage Licensee. IL Residential Mortgage License MB.6760323-DBA1– Illinois Residential Mortgage Licensee. MA Mortgage Broker License MC2129. MA Mortgage Lender License MC2129. Licensed by the N.J. Department of Banking and Insurance – New Jersey Residential Mortgage Lender License. Licensed Mortgage Banker-NYS Department of Financial Service. NY Mortgage Banker License B501049. Ohio Mortgage Broker Act Certificate of Registration MB.804158.000. Ohio Mortgage Loan Act Certificate of Registration SM.501888.000. OR Mortgage Lending License ML-4265. Licensed Mortgage Banker by the PA Department of Banking – Pennsylvania Mortgage Lender License 45048. Rhode Island Licensed Lender 20142998LL.

Contact Us

14801 Quorum Drive Suite 160,
Dallas, TX 75056