You’re Looking To Buy or Refinance A Jumbo Loan, So Why Choose BuildBuyRefi Over other Lenders?
We Provide Some Of The Best Jumbo loan Programs of any 50 state bank, working 7-days a week around Your Schedule, Not Ours!
If you visited other websites looking for this type of loan, you would notice most start out with this one question: What is a jumbo home loan?
Short answer, like any other loan it is a mortgage to cover your property when the loan amount is higher than conventional, FHA, USDA, and VA limits. You already know the answer because you found us by searching for this specific loan type. We go further than other banks by focusing on the more important aspects you want to know, like, can and how will you get approved at a low attractive rate and term. As an FDIC Insured Bank, we provide jumbo loans in all 50 states.
This Jumbo Home Loan Guide is designed to provide you with the information needed to make the best possible decision on who you choose to process and close your loan. We take the small-town bank approach with the more significant 50 state bank risk being especially competitive on rates.
We’re probably not the first company you found when starting your online loan search if it is, we’re lucky to have found each other first. Many jumbo lenders advertise for large property type who provide “not so great options” so let’s get right to it and first take a short quiz to see if you are in the right place.
Use These Links To Skip Ahead In The Guide:
Respond “YES” To Each Of The Top 5 Qualifiers, And You Are One-Step Closer To Getting The Best Manufactured Home Loan BuildBuyRefi Has To Offer.
Respond “NO” To Any Of These Statements, And You May Still Qualify!
(1). Your Property Is Larger Than 400 sq. Ft. And Not A Mixed-Use Or Commercial Property.
Jumbo loans are quite restrictive in many areas and like almost all programs your property must be larger than 400 sq.ft., and not consist of a mixed-use, or commercial estate or working farm. These property types fall outside of traditional jumbo financing guidelines.
(2). Your Loan Amount Exceeds Current FHA, USDA, VA & Conventional Guidelines.
Each county in the U.S. has a limit set by Conventional, FHA, USDA, and VA guidelines that dictate the maximum amount they will loan on any property from single family up to a four family. If you are higher than these loan limits, you will be required to obtain jumbo loan financing, which is more limited in where you can go, how much you must have in downpayment or equity and what rates you receive.
(3). Your Property Consists of 4 or fewer Units & 1 Unit Is Owner Occupied?
If you are using a residential Jumbo loan and buying or refinancing a 2, 3, or 4 family property, then you must personally occupy one of those units. Residential jumbo loans do not cover properties over four units, even if they are owner-occupied because this falls more in line with commercial or apartment financing. You must attest to occupying the property as your primary residence.
(4). If Purchasing, You’re Not Involved In a Non-Arm’s Length Transaction.
If a direct relationship exists between the buyer and seller or the borrower and any party to the transaction, then the sale is deemed a Non-Arm’s Length Transaction. Parties to the deal include but are not limited to: Borrower/buyer, Seller, Employer or Lender. Examples of non‐arm’s length transactions include sales between family members, renter buying from a landlord, employer to employee sale, and Borrowers who are employed in real estate or construction business who are involved in the construction, financing or sale of the subject property.
Great, if you answered “YES” to each of these, you passed the first part of our pre-approval quiz. If you have a “NO” somewhere, then call us now, or take our eligibility checker to discuss your situation. Answering “NO” doesn’t mean you won’t qualify, it just means we need to find out which area is impacting your request.
First, There Are No Guarantees Because There Are Many Unknowns.
Anyone offering you a guarantee for your jumbo loan is probably someone you want to avoid. It’s not guaranteed until you have met all conditions and closed your loan. But let’s discuss further how you can get the results you are seeking.
If you want the best, then there’s a need for wicked fast speed, and here’s why!
Applying and getting approved for a jumbo loan is only the first step in the process, it doesn’t guarantee that you’ll get the rate, terms, or program desire. Many factors go into achieving that low rate and great program you wanted, and that is “the speed in which YOU move.” Time plays against every borrower in a big way with any loan.
Learn the 4 most important reasons to “light the fire” and Take Fast Action on Your Jumbo Loan Pre-Approval!
Rate Locks Expire: Most loans are locked for 30 days because the shorter term allows you to get the lowest rate possible. If you lose your rate lock by letting it expire or needing to extend it because you took weeks getting the items back, it will cost you more money or a higher rate. With rates recently on the rise, a higher price could even make you no longer eligible for the loan you wanted. A long delay could require you to re-qualify for the loan again.
Programs Could Disappear: It’s happened before, we’ve witnessed a whole host of loan programs get wiped out overnight. Investors can choose to change their risk portfolio and stop offering programs altogether, that is why moving fast on the approval you have in your hand means taking action.
Your Job or Income Status Could Change: What if you lost your job, your income was reduced, or you wanted to take a new job, but it put your loan closing in jeopardy because you took too long? Any of these changes in your employment status could come back with more unfavorable terms, or worse, a complete loan denial.
Your Credit Score Could Dramatically Change: We’ve seen this happen many times before, a borrower maxes out their credit card for business, or they miss a payment because they weren’t paying attention, or judgment was filed for any host of reasons. Not closing quickly under the same credit terms is another reason for underwriters to require you to re-qualify or cancel the loan.
Follow These 3 steps to Get the lowest Jumbo Loan rates possible today.
Find a lender you feel confident in and apply to get pre-qualified from that lender. Make sure the lender has the program you want, and if they don’t sound confident they can close this program and have experience and reviews doing so, then keep looking! You may want to check out our reviews to help give you this confidence.
Request a rate lock on your loan once you are pre-approved and get your lender every item needed as fast as necessary to close your loan, so your rate lock doesn’t expire. Your side of the process is only complete when the loan is closed, not when you think you sent enough to satisfy the underwriters' request.
Take responsibility and move fast, as you know rates have been on the rise as of lately. Wait too long, and you could end up with a higher interest rate, therefore qualifying for a smaller loan amount than if you locked in faster on a lower price. It’s your job to ensure you meet all requirements, not the loan officer or lenders position to hold the file open as long as possible paying for the rate lock extension out of their pocket. Locks cost money because your lender is reserving the funds and rate you wanted. It’s your responsibility to ensure you move fast as not to let that lock expire or it could end up costing you.
BuildBuyRefi Will Loan On These 4 Styles Of jumbo homes.
(1). Single Family & Modular Homes
Any site built property, or modular home built and shipped to the site. These can be Owner Occupied, 2nd Home, and Investment properties. There are no age restrictions; however, they cannot be mixed-use, demolished, razed homes or co-ops.
(2). Manufactured Homes
VA Jumbo loans are available for any single-wide or multi-wide manufactured home larger than 400 sq. ft., and built after June 15, 1976. The property must not be on leased land or in a trailer park and must be on a permanent foundation.
(3). Multi-Unit Properties
Any property consisting of 2, 3, or 4 units, like, a side-by-side or top and bottom duplexes are allowed as long as one of the units are owned and occupied by the primary borrower. Meaning the primary borrower occupies 1 of the units full-time.
(4). PUDS, Townhouses & Condos
Any approved PUD, townhouse or condo must be approved or accepted by HUD, FHA, VA, Fannie Mae, or Freddie Mac agencies. Each program has their specific guidelines that expand further. Co-Ops are not permitted.
What Does Conventional, FHA, USDA, & VA Loan Mean, And Which Do I choose?
These terms (Conv., FHA, USDA, VA) refer to the program type and more often it is decided based on what your goals are. The program selection may also be determined by other factors such as location, loan amount, borrower status, and borrower’s desired transaction request. Each program has a different set of product offerings underneath it that are uniquely different. Let’s explain what these are.
The 2 different Jumbo Loan program Types available through BuildBuyRefi.
Conventional Jumbo Loans
The government does not insure conventional loans and typically require a more substantial down-payment or equity position to qualify. There are no 100% Conventional financing programs available for jumbo homes. However, you can go up to 90% on a purchase up to $1,500,000 for a single family home with qualifying credit scores, and up to 80% you require a loan over $1.5 million but under $2 million. There are no renovation loan programs available for jumbo loans.
VA Jumbo Loans For Active Military, Disabled or Retired Veterans, and their spouses.
Some of the best benefits available to Veterans and their spouses are still the VA home loan benefits. Of all jumbo loan programs, the VA loan offers the highest loan to value, the lowest interest rates and comes with no mortgage insurance at all. More Veterans should be taking advantage of this program at every chance they can get.
Sometimes Realtors will turn away this loan type, that means you’re working with the wrong realtor because they are the strongest of all government-backed jumbo home loan programs. The VA renovation program is not eligible for jumbo loans.
*FHA does not allow for any loan over their county limits. However, many counties can go up to $1 million when factoring in multi-unit properties. The USDA does not provide jumbo loan financing over the allowable county limits.
Our Most Popular Jumbo Home Loan Products & Details.
You most likely already have an idea of what loan program you need, want, or would like to have. But for those who are just learning about these program types, we want to explain them in more detail.
#1. Jumbo Purchase Loans
A jumbo purchase loan is used to buy a new primary residence, second home, or investment property. The types of jumbo and purchase loans we offer are Conventional, and VA government back programs. Additionally, only the VA allows for jumbo financing on manufactured and modular properties.
#2. Jumbo Cash Out & Debt Consolidation Refinance
A cash-out refinance is as it sounds, you're either taking cash equity out of your home to pay yourself for your personal use, or you're consolidating credit cards or other loans, thereby converting your equity and trading off for a lower monthly payment on all total debt. We have all Conventional, and VA jumbo cash out loans.
#3. Jumbo Streamline Refinance Loans
A streamline is strictly for those looking to lower their interest rate or modify their loan term only. No cash-out, debt consolidation, or renovation is allowed with this program. We offer the rate and term, Conventional, Jumbo Refi and the VA Jumbo IRRRL streamline refinance.
#4. Jumbo Reverse Loans
A reverse mortgage is where you receive payments monthly from the equity in your home instead of making interest payments on your mortgage. If you are over the age of 62 and your home is either paid off or almost paid off, it still qualifies for a reverse mortgage. Reverse mortgage loans are attractive for those on fixed incomes who find it harder to pay for day-to-day necessities or who choose to use the equity to pay off higher interest debt and eliminate their mortgage payment.
#5. Jumbo Loans For Home and Large Land / Acreage
Don’t let a property that is on large acreage pass you by, contact us if you want that single family, modular, or manufactured home on more substantial tracts of land but your realtor is trying to steer you away. They aren’t making any more land; you want to get it while it’s available and we want to loan against it for you.
Generally, we want a minimum “middle of the 3” credit scores To Be 700 or higher For A Conventional Loan, and 620 Or Higher For A VA Jumbo Loan.
My middle credit score is above 620 / 700, what rate can I get?
The rate you obtain depends on many factors since rates change daily, sometimes multiple times a day, the quote you receive today most likely will be different tomorrow. That is of course if you have not locked in your loan.
Borrowers with a lower credit score may see a little higher rate than those with a much higher rating. This is because investors offer better rates the higher your score is. They do this because those with higher scores have proven to be of lower credit risk than those with higher scores.
Many people who borrow a mortgage with a lower credit score on a higher rate could raise their credit even if they took out a 100% loan six months to a year later. In cases where that happens, we’re always working with our existing clients and reviewing market conditions to offer an internal streamline refinance.
The streamline refi is the most effective loan used to lower a borrower’s interest rate or modify their loan term. It is also possible to have a lower score like the VA streamline refinance as this loan looks at your overall improvement to your financial situation and is not relying on your credit report.
Do you Provide bad credit Jumbo Loans? What is the lowest score you accept?
Can we lend lower than 620 or 700 for the respective jumbo loan programs?
No, the jumbo loan program is one of the most strict of credit score requirements due to the more substantial loan amount and risk involved.
Typically when a borrower has a score under the guidelines a few things happen.
#1. The interest rate we can offer becomes too high.
The pricing adjustments that come for lower scores and loan amounts become a high risk for the lender. And due to us offering the best programs government-backed lending has to offer, we stay away from dancing with any loan that approaches what the government deems to be "high costs."
#2. The borrower has limited to no credit, or the credit trade-lines they have are not acceptable to our current underwriting guidelines.
It’s even true that some people can have a 700 credit score with limited or no trade lines that could receive a denial, credit score isn't the only factor to a credit report. It's important to show our underwriters you can make payments on time and are at low risk for defaulting on your home loan. For these reasons, jumbo loans come with stricter requirements for active tradelines on your credit report.
#3. The borrower could be a few steps away from a much better credit score.
If your credit score falls under the 620 / 700 requirements, there may be some areas where credit repair could help you become more attractive to lenders and underwriters. In many instances, you don’t have to go through a 3rd party credit repair company as today’s lenders have tools to help you determine what moves you can make on your own to improve your score. Do what is needed and not only would you get a lower interest rate, you could qualify for a more substantial loan amount with better home options than if you settled for borrowing with worse credit.
The 5 Acceptable Income Types When Applying For A Conventional or VA Jumbo Home Loan.
While we accept almost every income type when verifying and approving these types of loans, the two we won’t loan on are stated income loans or bank statement only loans.
W2 Full Time & Part Time Employees
Active Military Income
Retirement, Pension, 401k regular disbursement income
Social Security or Disability income
It’s important to note that any change during the loan process in employment status, such as getting fired or switching jobs is grounds for denial or re-underwrite. You want to avoid any change in your job status while completing your loan if there is the slightest chance something might change you need to speak to your loan officer immediately about this.
Do not assume because you are getting a better job offer that your loan will still be approved. Changes like these scare underwriters and will increase the amount of documentation you're required to provide. These changes could delay your closing, cost you a rate lock, or you could lose your purchase money escrow altogether if you’re under contract.
You will save thousands in lost time and money by being as upfront as possible with your loan officer.
Aside From Working 7 Days A Week On Your Schedule, We’re Experts On The Most Popular Jumbo Loan Programs To Hit Today’s Mortgage Market!
The Truly Determined Borrower Ultimately Wants The Best Rate & Loan Term Possible, And At BuildBuyRefi, We Offer Some Of The Best Customer Service On The Market Today.
We Won’t Leave You Guessing What Is Going On!
You may ask, why do other lenders and even my local bank offer rates, shorter terms, or require a higher down-payments?
That’s a great question!
Short answer, because they don’t want to take the risk a jumbo loan can bring. The higher the loan amount, the more significant the risk.
The Top 3 reasons why other Lenders Find it hard to Compete with BuildBuyRefi in the Jumbo Loan market.
#1. We have The Some Of The Most competitive Jumbo Loan products, rates & loan terms:
Most lenders, brokers, and banks only have a few programs, indeed not offering anything near the vast array of jumbo loan products we have. Their rates are higher and loan term shorter because they can’t touch the monthly volume we produce. They don’t offer the high loan-to-values because they still view jumbo loans as riskier products. We aim to be competitive on rates and programs.
#2. We’re seasoned veterans On All Jumbo Loan Programs:
Most are not seasoned veterans in the jumbo lending sphere, meaning the loan officer you worked with might never have closed a unique jumbo property before, and in our opinion, this is a dangerous mix to get involved in. You need a banker that knows how to navigate these jumbo properties, and most of our bankers have 15-30 years experience each lending on jumbo homes in all 50 states.
#3. We want To Help Fund Your Jumbo Loan Regardless Of your property type:
Your local bank or credit union may be acting like they are doing you a favor to keep you with them, but in fact, they may not want your property type on their books. They may talk you into putting more money down or taking a higher rate saying they are making an exception to the guidelines. In this case, their inability to be competitive or desire for your property type is costing you more just by staying loyal. And while we love loyalty, we feel you shouldn’t take a rate that is 2-5% higher requiring 20% or more down to sacrifice for that loyalty. Ask us about our VA jumbo loans for manufactured or modular homes if you have this type of property.
5-Star Lender Reviews That WOW!
Richie, OK... so you've officially done something I've never seen in 22+ years selling real estate. Closed a VA Loan on 224 Acres, with a Manufactured Home. CONGRATULATIONS! and THANK YOU!!! Admittedly, I was skeptical (more like pessimistic) when James told me you were going to get this VA Loan completed. And I had many doubts along the way, because I'd seen so many VA Lenders fall flat on their faces, just before the Closing. BUT... You got the Job DONE! Occasionally, I find someone out there who has done an Outstanding Job, helping my Clients... and You are one of these! I'm now officially a FAN of You and Your Work. I would be honored to promote you and your services to other Agents within our company, and I intend to do so. I will call you when I've caught up on my work a bit... and learn more about how I can do my job better on the next VA transaction.
~Tom K. Realtor