Jumbo Loans aka a Jumbo Mortgage

What is a Jumbo Loan?

A jumbo loan is a non-conventional loan that agencies such as FHLMC and FNMA, will not buy and trade due to the loans cost. When lender offers a mortgage loan, they normally do not keep the mortgage for the duration of the loan. They sell the loan on the secondary market to agencies such as FHLMC and FNMA.

Jumbo loans were designed to help people with high incomes afford homes in higher price range. Whether it be a luxury home or a smaller home in a higher end neighborhood. With home prices rising more middle-income Americans have turned to Jumbo loans to purchase their dream homes.  

a.k.a. "Jumbo Mortgage"

The pro's of a Jumbo Loan

- You need the money, you get the money

- No need for multiple loans

- Variety of different Jumbo loan programs

- Dropping interest rates

- Easier to apply for

- Refinancing can bring huge savings

- Special offers from banks & lenders

The con's of Jumbo Loan

- HIGHER interest rates

- More difficult to get

The bottom line is that if you are considering a jumbo mortgage loan, DO YOUR HOMEWORK!

As with any major purchase, weigh your options, both the pros and cons to ensure you make a well informed decision for your loan. 

Federal Housing Administration (FHA)

The Federal Housing Administration (FHA) is a United States government agency as part of the 
National Housing Act of 1934. 

The goals were:

• To improve the housing standards& provide home financing through insurance of mortgage loans 
• Stabilize the mortgage market. 

4 out of 10 of the American population were renters
The new practices allowed a number of people who could afford the down payment and monthly payments.

When the FHA was first introduced to Americans, the industry was "flat on it's back".
Over 2 million construction workers were without jobs.
The terms for those who were seeking a mortgage were difficult to meet.

1965: It became part of the Department of Housing & Urban Development Office, aka HUD. 

1940's: The FHA helped finance military housing and homes for the  veterans returning from the war. 

1950's & 1960's: helped spark production of million of privately owned apartments for elderly and handicapped,as well as lower income Americans. 

1970's: Thousands of apartment building were struggling to survive, the FHA's emergency financing kept troubled properties a float. 

1980's: Home prices were on a steady decrease & the possibilities for potential home buyers to get financing they needed during the recession.

2001: Nations home ownership rate has soared to an all time high of 68.1%

The FHA insures the loan so the lender will offer a better deal!

The government insures FHA Loans, making the home the collateral and giving lenders protection against default.

Who is eligible?

• First-time Home-buyers
• Low Income Households
• Low Credit Scores
• Poor Credit History
• Bankruptcy
• $0 Out of pocket cash

The Advantages to FHA?

• Smaller down payment (3%)
• Lower Costs & closing cost can be included in mortgage
• Easier to qualify
• Flexible Credit Guidelines
• No income requirements

Tip for First Time Home Buyers- By making your FHA Loan payments on time, you are building your credit and equity, you'll have the option to refinance into a conventional loan, with even better rates and NO MORTGAGE INSURANCE.

"Take the first step to home ownership and contact me for more information about 

FHA Loans!