San Jose Jumbo Mortgages
Do you need a jumbo mortgage in San Jose? If you are thinking of buying a large family home, you may need to do just that. If you have a more modest four-bedroom house in mind, however, you may think you can get away with a standard conforming conventional loan. You would be surprised how many San Jose homes fall under the jumbo loan umbrella, however.
What is a Jumbo Loan?
First off, if you are still learning the ropes with mortgage terminology, a jumbo loan is also called a “nonconforming” loan, because it is any conventional loan which does not conform to the lending limits set by Fannie Mae and Freddie Mac. In most parts of the country (including California), that lending limit is $417,000. In some states and high-cost counties, however, the lending limit is higher. Here in Santa Clara County, the conforming loan limit is $625,500.
The thing about living in the Silicon Valley area is that the cost of living here is so high that many modest homes exceed this special loan limit anyway. An astounding number of our customers end up choosing jumbo loans so they can purchase a home in which they will be comfortable living with their families. That doesn’t necessarily mean a luxury estate. Again, in some parts of town, a simple four-bedroom home can cost more than $625,500 easily!
Jumbo loans often carry more stringent underwriting guidelines than conforming loans, and may also carry higher credit score requirements. For that reason, they carry a downside for you as the buyer. Finding friendly terms can be a challenge, and signing on a jumbo loan may carry a higher risk for you. You may find many hidden costs and fees standing in your way. You also may have a hard time qualifying if you have a lower credit score or have had a short sale.
That is why it is essential not to try to go it alone when you are shopping for a San Jose jumbo mortgage. Because jumbo loans are so common in our area, there are mortgage lenders offering excellent deals and friendly terms—but also plenty of sharks out there preying on unsuspecting customers.
Here at Thrive Financial, we know which are which. In fact, we have a whole network of friendly providers with excellent jumbo loan terms in the Silicon Valley area. Our lenders provide our customers with special deals and discounts which are not available to the general public. So we can give you access to the lowest interest rates and the best loan terms you are going to find anywhere in the area. If you have had a short sale or otherwise cannot qualify for traditional jumbo financing, we can put you in touch with a non-prime lender who can see to your needs.
Ready to get started, or just want to ask us a question about jumbo mortgages? Email us at (408) 599-3628 to talk to us about your mortgage needs. You can also click the button below for a free instant quote on a San Jose jumbo loan!