Jumbo “Portfolio” Loans
The ability to close the most complex of Jumbo loan transactions is a trait that sets Radford Capital Group apart. A loan amount that exceeds the conforming loan limit as dictated by the Federal Housing Finance Agency (FHFA) is considered a Jumbo loan. Jumbo loans are made by “portfolio lenders” who do not sell their loans to government sponsored entities Fannie Mae and Freddie Mac. Unlike the conforming loan market that abides by a black and white set of guidelines dictated by Fannie Mae and Freddie Mac, the Jumbo loan market operates on guidelines that are dictated by each individual lender. Thus, one can only be successful in securing Jumbo financing by having a firm grasp on the product offering and guidelines applicable to each lender in the Jumbo loan marketplace. Jumbo loan scenarios are often more complex than their conforming loan counterparts. Jumbo loan borrowers are often self-employed, may have multiple income sources and can often feature income that varies greatly from year to year. Not restrained by Fannie Mae and Freddie Mac underwriting guidelines, Jumbo lenders offer a wide variety of tools that may help a borrower qualify. This may include the following:
- Ability to qualify based on a 40-Year amortization schedule.
- For borrowers with significant financial assets but annual income that may not qualify…Jumbo lenders may allow the ability to use an asset depletion formula to be applied as qualifying income.
- The ability to secure an interest-only loan.
- The ability to use rental income from a departure residence.
- More liberal loan to value ratio guidelines.
- Extended debt to income ratios.
At Radford Capital Group, we have experience with the most complex of Jumbo loan scenarios and we know to utilize portfolio lending guidelines in a manner that will help you qualify for Jumbo financing.