Are Indianapolis jumbo mortgage rates now lower than smaller conventional loans? In some cases yes! Depending on your credit and debt-to-income ratio, some lenders are now offering better Indianapolis mortgage rates for jumbo loans vs conventional loans for lower amounts.
Indianapolis Jumbo Mortgage Rates are for Loans Over $417k
More and more people are considering jumbo mortgage loans in Indianapolis these days. A jumbo loan is for anything over $417,000. This amount exceeds the limit of conventional loans that are sponsored by the government.
Conventional conforming loans have to abide by particular rules set forth by Freddie Mac and Fannie Mae. These rules and restrictions have to do with how much money the loan is for, the debt-to-income ratio of the borrower, and how much documentation the borrower provides to the lender.
Lower Down Payments for Indianapolis Jumbo Mortgages
The good thing about jumbo mortgages is that they come with significantly lower down payments. While some conventional loans may require 20% or 30% down payment, large jumbo loans may require only 10% down. This frees up more cashflow for the borrower which many home owners enjoy, especially during this phase of the buying process.
Jumbo Mortgage Loans Aren’t Just for Mansions
One misconception about jumbo mortgages that we see a lot is that jumbo loans are just for huge mansions. There are actually many properties around Indianapolis that are fairly modest middle-class properties that list for well over $500k. It all depends on your credit score and debt-to-income ratio when it comes to whether or not you should consider applying for a jumbo loan or a conventional loan.
Need Help Qualifying for a Jumbo Loan in Indianapolis?
My team and I specialize in jumbo mortgage loans. Applying for a large loan can be a lot more complicated than smaller conventional loans. The lenders are much more strict and they make you provide a lot more documentation of your income and liquid assets than when you are applying for a standard conventional loan.
Give me a call today or fill out our contact form online. I will personally help you navigate the winding road to your jumbo loan approval! Or if I find that there’s another loan type that would be better for you, I will pass that info along to you and let you make the final decision.