Why Jumbo Loans Are A Better Way to Purchase Your Luxury Home
What Is a Jumbo Loan?
A Jumbo Loan is a type of home loan that allows borrowers to qualify for a larger loan that exceeds the conforming loan limits, which typically cut off at $510,400 for most counties. Put simply, a jumbo loan, also known as a jumbo mortgage, will offer high-end financing that traditional loans cannot.
The Problem With Jumbo Loans & Big Banks
Up until now (for the most part), if you wanted to purchase a luxury home, you would have to go to the bigger banks and play ball with their standard set of internal portfolio guidelines. This means they create standards for down payment, credit score, post-closing reserves, loan amount, and the wait time to secure the loan can be lengthy.
The Problem With Buying A Luxury Home with Cash
Because securing a larger loan can be such a headache, many home buyers that can purchase a luxury opt to just use cash. While this seems like a great option and is easier, that money that is now locked into a property could be better invested. Yes, the property value will increase over time, but in that time the money could have been invested in other real estate investments, stocks, or businesses that can have the potential for a much higher and faster return rate.
What Areas Will I Need a Jumbo Loan In?
Many areas conform to the $510,400 limit, even Counties like Riverside that have luxury home areas such as Palm Springs, Palm Desert, Rancho Mirage, and La Quinta. So needing to go to a big bank for a home loan has been common for many areas.
Why Come to Griffin Funding for Jumbo Loans?
Griffin Funding now offers Jumbo Loans with as little as 10% down and we are dedicated to making home loans more accessible to borrowers, offering competitive interest rates, more flexible terms, and five-star service. Learn more about jumbo mortgages and find out if it’s the best way to purchase your dream home.