How to Know if You Qualify for a Jumbo Loan
3:08 pm ET
November 11, 2014 November 11, 2014
Jumbo loans come in to play when the property cost exceeds the mortgage conforming limit: They start at $417,000 for most parts of the country and as high as $625,501 in some higher-priced real estate areas.
If you’re planning to buy expensive property, a jumbo loan is a viable option—but qualifying is tougher than it is for a traditional mortgage .
Here are the key factors in qualifying for a jumbo loan.
“Jumbo loans always have more scrutiny than conventional loans,” said Jeremy David Schachter, mortgage adviser and branch manager for Pinnacle Capital Mortgage Corporation.
To qualify for a jumbo loan, you’ll need to be able to prove you have the income and liquid reserves to cover the payments. Traditional borrowers will need recent paystubs dating back 30 days and W2 tax forms stretching back two years to prove income.
“Self-employed borrowers will still have more of a challenge than salary borrowers,” he added.