Jumbo loans are for people who need to borrower over $424,100. A 10% to 20% down payment is typically required.
Some borrowers find it challenging to qualify for a mortgage given current agency (FHA, VA, USDA and conventional) guidelines. This is when a non-conforming loan may be the solution. Here are a few examples of when a non-conforming loan is used:
- Maybe you have had a recent bankruptcy, short sale, or foreclosure. Current agency guidelines require waiting periods after such credit events before qualifying. Non-conforming loans have qualifying provisions without the waiting periods.
- Foreign National loans are popular non-conforming loans. These are for people that are not U.S. Citizens and live abroad.
- Perhaps you are self-employed and need to verify your income with documentation other than tax returns. Non-conforming loans accept alternative documentation.
Jumbo and non-conforming loans typically require larger down payments and have higher interest rates than agency loans.