Delaware Jumbo Mortgages
What are Delaware Jumbo Mortgages?
Delaware Jumbo Mortgages are mortgage loans that amount to more than conventional conforming loan limits set by Fannie Mae and Freddie Mac. These limits set restrictions on the maximum value of any individual mortgage that they will purchase from a mortgage lender for a Delaware Conventional Loan.
The Delaware conventional maximum loan limit is set at $417,000, so any loan over the conventional loan limit cannot be bought by Fannie Mae or Freddie Mac. Any mortgage loan with a principal balance of over $424,100 will most likely be considered a Jumbo Mortgage and as of January 1, 2018 the conforming loan limit is being raised to $453,100.
Do I Qualify for a Delaware Jumbo Mortgage?
To qualify for a Jumbo Mortgage, you can expect:
- A down payment of at least 20 percent for a purchase (or have at least 20 percent equity in a refinance).
- To be required to document your income.
- An adjustable-rate loan – fixed-rate jumbos are relatively rare.
- Your monthly mortgage payment to be no more than 38 percent of your income before taxes.
A lot of homeowners, especially those without pristine credit and financial history, find financing or refinancing a new home extremely difficult. Some might even say it’s impossible to get a new mortgage and finance a home under certain conditions. After the disaster in 2008, many lenders did not want to take the risk of providing Jumbo mortgages. Many lenders either restricted the loans or got rid of them altogether. It wasn’t until recently that a small amount of lenders felt safe to give Jumbo mortgages another try (though they are extremely cautious about it).
How do I Lower Jumbo Mortgage Interest Rates?
Borrower’s who meet the qualifications for Jumbo Mortgages will find more attractive rates these days, and that’s a great relief. Interest rates significantly affect your mortgage payments when your loan amount is so much higher than the norm. If you are eligible and go after a Jumbo mortgage, remember that finding a low-interest rate is essential for many borrowers. Keep money in your pocket, not your banker’s.
For a long time, the interest rates on Jumbo Mortgages were consistently higher than the rates on conforming and FHA mortgages. During the recovery from the mortgage and real-estate meltdown of 2007 and 2008, that became less of the norm. Now, interest rates on jumbo mortgages can be comparable to rates on comparable conforming loans. This is mainly because lending standards for jumbo mortgages are typically more strict, with larger down payments required.
Though a low-interest rate is a big goal of Jumbo Mortgages, it’s not so easy. It’s important to look at all the facts of Jumbo Mortgages before you pursue one.
Delaware Jumbo Mortgages Loan Limit for 2017:
Delaware counties have a maximum loan limit of $453,100 for a single-family residence, ($543,000) for two units, ($656,350) for three units & ($815,650) for four units. These limits are applicable to purchase and refinance mortgages and is the same in all three counties of Delaware which are New Castle County, Kent County, and Sussex County. A Jumbo Mortgage would exceed these limits set by Fannie Mae and Freddie Mac so anything over the $453,100 limit is a Jumbo Loan.
What is the Down Payment Required for Jumbo Mortgages?
Jumbo Mortgages with less than 20 percent down payment or equity are extremely rare but Primary Residential Mortgage offers a Jumbo mortgage with as little as 5% down.
We Offer 95% Jumbo Mortgages
- 95% LTV for a Primary Residence (purchase/rate term) up to $625,500
- 90% LTV for a Primary Residence (purchase/rate term) up to $850,000
- 85% LTV for a Primary Residence (purchase/rate term) up to $1.000,000
- Cash-out Refinance, Second Home, and Investment Property transactions available.
- Fixed Rates with 15, 20, and 30 Year Terms available.
- Loan must receive AUS (DU/LP) Approval (with ineligible finding due to LTV and loan amount).
- MI is required for LTV’s above 80%.
- First Time Home Buyers are Eligible under certain restrictions.
- Gift Funds allowed for Primary Residence after borrower contributes 5% from own funds.
How do I Apply for Delaware Jumbo Mortgages?
If you would like to apply for a Jumbo Mortgage to purchase a home in Delaware, please call 302-703-0727 or APPLY ONLINE.