FHA home loans & first time home buyer loans in Utah County

Jumbo Home Loan A Jumbo home loan follows established underwriting guidelines set by Fannie Mae, Freddie Mac and/or their respective investor. Generally, a Jumbo home loan is used when the loan amount exceeds the conforming loan limit of $548,250. However, in some high-cost areas, a High Balance home loan is available.

Loan Uses • •

Use a Jumbo mortgage loan for the following transactions: Purchase – Finance the purchase of an existing home or new construction home.

Rate & Term Refinance – Refinance any current mortgage loan in Utah that were used to purchase a home that provides a financial benefit to the borrower by lowering the interest rate, monthly payment or removing mortgage insurance. Second mortgage loans that were not used to purchase the property can be subordinated to the new home loan. Borrowers are unable to receive more than $2,000 cash back at closing. Texas residents may not receive any cash back at closing.

•

Cash out Refinance – Utilize the equity in your home to consolidate debt, make home improvements or to receive cash for any need. Texas residents may not exceed 80% loan-tovalue with a cash out refinance.

Loan Amounts Loan amounts that exceed the conforming loan limit set by Fannie Mae and Freddie Mac of $548,250 are considered a Jumbo home loan. However, some high-cost areas are eligible for a High Balance home loan.

Maximum loan amounts of up to $3,000,000 are available with specific loan-to-value (LTV) requirements depending on the investor.

Down Payment A down payment is required for a Jumbo home loan. The minimum amount required is 5% of a home’s purchase price. For any down payments less than 20%, mortgage insurance may be required.

Having a down payment of 20% or more will not require mortgage insurance.

Mortgage Insurance To protect the Jumbo loan lender, mortgage insurance protects against losses caused by a homeowner’s default on a Jumbo mortgage loan. Mortgage insurance (or MI) typically is required if the homeowner’s down payment is less than 20% of the purchase price.

Mortgage insurance for a Jumbo mortgage loan can be paid monthly, as a single premium at closing or by the lender.

Property Types • • • • • • • • •

You may use a Jumbo home loan for the purchase or refinance of the following property types: Single family residence – one unit, attached or detached including town homes Modular Homes – must have standard foundation Multi-unit – two to four units Mixed Use Property – condominiums & PUDs where the commercial space does not exceed 25% Condominiums – warrantable Planned Unit Developments – PUDs Investment property – up to ten properties Log Homes – typical for the area with no excessive acreage Cooperatives – must meet Fannie Mae guidelines

Credit Requirements Credit requirements for a Jumbo loan are more stringent than other loan programs. There is a requirement of a 680 FICO score with two or more credit bureaus.

6740 S 1300 E STE 100 Salt Lake City, UT 84121 Jason Skinrood – NMLS #180306, GA Lic#24538 Direct: 385-236-0025 Branch: 801-265-8900