A jumbo loan, often termed a “non-conforming” mortgage, surpasses the conforming limits regulated by federally sponsored enterprises. These loans, applicable to both new home purchases and refinancing, differ from conforming loans as the lender, rather than Fannie Mae and Freddie Mac, sets the guidelines. Given the varying home prices across the United States, even within states and communities, jumbo loans accommodate different requirements based on average home prices.

In contrast, conforming loan regulations are established by government-sponsored enterprises to enhance lender liquidity, enabling them to provide more loans to borrowers. While conforming loans follow uniform mortgage documents and national standards, jumbo loans, perceived as somewhat riskier, have their guidelines set by the lender. Kal Duwage Mortgage Inc. is committed to guiding borrowers through the unique aspects of jumbo loans.

Qualifying for a jumbo loan involves several steps, including maintaining a debt-to-income ratio below 43%, showcasing cash reserves, and providing extensive financial documentation beyond conforming loan requirements, such as full tax returns, W-2s, and 1099s. Despite the higher dollar amount, the overall qualifying methodology for jumbo loans aligns with conforming loans.

Choosing Kal Duwage Mortgage Inc. for a jumbo loan offers various benefits tailored to diverse borrower needs. These include loans up to 80% of the home’s value with a 20% down payment requirement, availability of fixed-rate and adjustable-rate jumbo loans, and certain programs allowing down payments in the form of a gift.

Kal Duwage Mortgage Inc. understands the uniqueness of each home buying experience and recognizes that high home prices don’t necessarily equate to immense wealth. Jumbo loans cater to a broad spectrum of borrowers, from those seeking large, expensive homes to individuals navigating housing markets with prices well above the local or national average. The collaboration between Kal Duwage Mortgage Inc. ensures a seamless application process for jumbo loans.