Beacon Lending Home Loans in Denver Colorado

Beacon Lending Can Successfully Guide You Through the Home Loan Process

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Are you looking to purchase or refinance?

Jumbo and Super Jumbo Lending up to $3,000,000

Luxury home purchased with a jumbo loan

The requirements for Jumbo Loans have changed in 2020 making it easier to get approved for home loans up to $3,000,000.

Conventional Loan Limits

In 2022, the loan amount limits for conforming loans increased to $647,200. That means any loan amount higher than $647,200 is considered a JUMBO LOAN. This amount can vary depending on where the property is located. Using this interactive map for loan limits you can easily find the conventional loan limits for your county.

Why Consider a Jumbo Loan?

Usually serviced from the lender using one of their portfolio programs, this is a loan that is usually a flagship product, so they come in with very good pricing. A reason for this, is that the portfolio lender is holding the mortgage, and not having to package, and sell it off to the secondary market. If they wanted to charge 1% (not likely) they could, it is their money.

But how does this help me?

people with questions about jumbo loans

Good question. If you are finding yourself attracted to a bigger home and price in Colorado, and are not comfortable with the hefty down payment, Jumbo Loans are available up to 90% of the purchase price with a high enough credit score. Loan options available for all kinds of jumbo loans up to $3,000,000 are as follows from a basic selection of the following.

  1. 30 year fix –which will carry a higher rate and highest payment
  2. 5/1, 7/1, and 10/1 ARM – carries a lower rate fixed for 5, 7, or 10 years.
  3. Interest Only Feature – Will usually be interest only tied to a 30 year fix – lowest
    payment option.
  4. 40 year fix – Yes, this does exist

Jumbo Loan Case Scenario using 90% LTV

John and Julie find a home for $1,000,000 they want to purchase in the LoHi neighborhood of Denver. They want to put as little as they can down and are only comfortable putting 10% down. They speak to a local mortgage broker, and are given a quote on a 30 year fix of 5.75% Interest Only.

  • Purchase Price – $1,000,000
  • 10% down – $100,000
  • Financing 90% LTV at $900,000
  • 4.75% 30 year fix payment  – $4,694.83

Updated Jumbo Loan Qualifications

Jumbo loans can help you qualify for a luxury property like this couple in Denver, Colorado.

Besides being able to finance a majority of the purchase price, the jumbo loan has other features which should help more buyers get qualified for their next luxury home purchase. They are as follows.

Flexibility in getting your Income Cleared

If you are self employed and have been turned down from the bank, please do not get discouraged. Seek out a local Mortgage Broker and get better loan options. They are out there. We can qualify you based on your business bank statements, a P&L letter, etc. We don’t put heavy weight on your tax returns if you cannot show enough income that way. Again, there is always a better way.

Financing up to 90% LTV with no Mortgage Insurance

That means no bothersome payment paid every month which is basically throwing your money away.

Rates reduced in all FICO x LTV (Loan to Value) combinations

Rates have been reduced making jumbo loans less expensive over the life of the loan. These rates have been reduced for all of the FICO score and LTV ratio combinations.

Debt To Income Ratios up to 50%

Yes, 50%. If you are speaking with a mortgage broker and he is saying 43% is their max, I am here to tell you there is a better way. Keep researching your options. Non QM Lenders mostly ALL go up to 50% DTI, or Debt to Income Ratio, which will qualify more home buyers. This is their niche.

Credit event seasoning reduced from 60 months to 48 months

Negative credit report items such as foreclosure will not have an impact if they occurred over 48 months prior. This has been reduced from 60 months (5 years).

Non-Occupying Co-Borrowers

Yes, if you cannot qualify on your own, you can have a non-occupying co-borrower on the loan to help you qualify. Mom, Dad, etc, can go on the loan with you, and not have to live there.

Jumbo Loan FAQ’s

What is the Jumbo Loan minimum in 2020?

Jumbo loans have a minimum starting at $250,000.

What is the jumbo loan limit in 2020?

Jumbo loans have a maximum of up to $3 million in 2020.

What does 90% LTV mean?

LTV (loan to value ratio) is one of the main numbers a lender looks at when deciding to approve you for a home purchase or refinance. Your LTV compares the size of your u003ca href=u0022 loanu003c/au003e to the value of the home. A 90% LTV means the loan makes up 90% of the total price.  For example: If your home is worth $200,000, and you have a mortgage for $180,000, your loan to value ratio is 90%.  (because the loan makes up 90% of the total price).

How much are the closing costs on a Jumbo Loan?

You’ll have to budget between three and six percent of the total home value for closing costs with any type of jumbo mortgage loan.  Sometimes, however, jumbo loans have much higher closing costs than conventional mortgages. For example, on a $500,000 mortgage, you can expect to pay between $10,000 – $25,000 in cash at the closing table.

Can you get a jumbo loan with 10% down payment?

Jumbo loans typically have much higher down payment requirements compared to conventional loans. It’s common to see lenders require 20% down on jumbo loans for single-family units.  With a jumbo FHA loan, only a 3.5% down payment is required in an effort to make home ownership more accessible to more people, (but you can’t get outside assistance with your down payment).

Unlocking Opportunities: Jumbo and Super Jumbo Loans in Today’s Mortgage Market

In today’s real estate market, borrowers seeking to finance high-value properties have access to specialized loan options known as jumbo and super jumbo loans. These loans cater to individuals with unique financial circumstances and offer flexibility for purchasing or refinancing luxury homes. Here’s some valuable information about jumbo and super jumbo loans and their relevance in today’s mortgage landscape:

  1. Loan Size Thresholds: Jumbo loans are mortgages that exceed the conforming loan limits set by government-sponsored entities such as Fannie Mae and Freddie Mac. These limits vary by location but typically range from $548,250 to $822,375 (as of 2021). Super jumbo loans, on the other hand, surpass even higher loan limits, typically starting at $1 million or more, depending on the lender’s criteria.
  2. Financing High-Value Properties: Jumbo and super jumbo loans provide the means to finance high-value properties that exceed the limits of conventional conforming loans. These properties often feature unique architectural designs, extensive amenities, and prime locations, offering a luxurious lifestyle for homeowners.
  3. Customized Loan Solutions: Jumbo and super jumbo loans offer borrowers customized loan solutions tailored to their financial needs. These loans consider a variety of factors beyond standard qualification criteria, such as creditworthiness, income stability, asset reserves, and the property’s value. Lenders assess each borrower’s financial profile individually to create a loan package that aligns with their specific requirements.
  4. Competitive Interest Rates: Jumbo and super jumbo loans historically carried higher interest rates due to their larger loan amounts and perceived higher risk. However, in today’s market, interest rates for these loans have become more competitive, making them an attractive option for qualified borrowers. It’s important to compare rates and terms from different lenders to secure the most favorable terms.
  5. Down Payment Requirements: Jumbo and super jumbo loans typically require larger down payments compared to conventional loans. While the specific down payment amount varies depending on factors such as creditworthiness and loan size, borrowers can expect to provide a substantial percentage of the property’s purchase price as a down payment. Some lenders may offer options for lower down payment programs, but it’s important to carefully evaluate the associated costs and terms.
  6. Reserve Requirements: Given the higher loan amounts, lenders may impose reserve requirements for jumbo and super jumbo loans. Reserves refer to the cash or liquid assets that borrowers must have readily available after the loan closes. These reserves act as a safeguard to ensure borrowers can continue making mortgage payments in the event of unforeseen financial challenges.
  7. Documentation and Underwriting: Jumbo and super jumbo loans often require more extensive documentation and rigorous underwriting processes compared to conventional loans. Lenders may request detailed income verification, asset documentation, and a thorough review of the borrower’s financial history. It’s essential to be prepared to provide comprehensive financial documentation to expedite the loan approval process.
  8. Expert Guidance: Given the complexity of jumbo and super jumbo loans, it’s advisable to work with experienced mortgage professionals who specialize in these loan types. They can guide borrowers through the process, help identify suitable lenders, and navigate the intricacies of underwriting requirements and documentation.

As with any mortgage decision, borrowers should carefully evaluate their financial situation, long-term goals, and eligibility for jumbo or super jumbo loans. It’s important to conduct thorough research, compare loan terms from multiple lenders, and seek expert advice to ensure a well-informed decision and a seamless borrowing experience in today’s dynamic mortgage market.

In Closing

Stay Informed with Up to Date Information

Do your research. There are many staffed ghostwriters out there writing babble about jumbo loans with out-of-date information. Rates, terms, and offers change so it is important to find up to date information.

Find a Qualified Local Mortgage Broker

If you are interested in what you qualify for, or have any questions regarding jumbo loan financing, seek out a qualified Mortgage Broker as you shop around. Not only someone who can offer a superior product but someone who is familiar with the industry and housing market in Colorado.

Please understand these companies and lenders are people just like you. They want your business and are not tied to the QM Standards, which can be extremely rigid. We have seen approvals with limited reserves, lower credit scores, etc. If the loan makes sense, we can usually get it underwritten. Do your research!

Brian Quigley Profile Photo
Brian Quigley
Hello, my name is Brian Quigley and I have been a mortgage broker in Denver, CO since 2003. I have been fortunate enough to choose this very rewarding mortgage broker career and help thousands of borrowers over the years.

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