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LendSure’s Guide to Jumbo Loans

October 16, 2024
An aerial view of a modern, expansive home set within a desert landscape, featuring clean lines, multiple flat roofs, and a circular driveway. The property is surrounded by sparse desert vegetation, with a golf course visible in the background, highlighting the home’s secluded and luxurious setting. The architecture incorporates various textures and materials, blending with the natural surroundings.

The luxury home market is making headlines in 2024, with the average price of luxury properties in the U.S. hitting a record high of $1,180,000 in Q2, with an 8.8% rise from last year, marking a large jump in nearly two years. This increase highlights a significant opportunity for those who wish to diversify their loan offerings with jumbo loans. Are you ready to tap into this lucrative market?

Large cities like San Francisco, New York City, and Los Angeles are at the forefront of this trend, where high property values make jumbo loans essential for prospective buyers. By understanding and incorporating jumbo loans into your portfolio, you can meet the growing demand in the luxury home markets and enhance your service offerings.

Our guide to jumbo loans explores what exactly they are, their benefits, and why LendSure’s program might be the perfect fit for your clients.

What Exactly is a Jumbo Loan?

Jumbo loans are a type of portfolio loan crafted for properties that surpass the conforming loan limits. Perfect for areas with high property values, they provide the financial leverage necessary for luxury home purchases. Unlike conforming loans, Jumbo loans aren’t backed by Fannie Mae or Freddie Mac, allowing for greater flexibility in these high-value transactions. However, this flexibility comes with the need for stricter credit and income qualifications.

Why Choose a Jumbo Loan?

  • More Buying Power: Perfect for financing high-end vacation homes, primary residences, or investment properties without liquidating other assets.
  • Competitive Interest Rates: Often on par with conforming loans, offering cost-effective solutions for borrowers.
  • Investment Potential: Ideal for securing high-value properties, including 5-8 unit properties, with the potential for substantial returns.

Who Should Consider a Jumbo Loan?

Jumbo loans are well-suited for affluent borrowers with strong financial profiles, particularly those earning between $250,000 and $500,000 annually. Potential borrowers also generally need:

  • Credit Score: Typically a minimum of 700.
  • Debt-to-Income Ratio: Preferably below 43%.
  • Cash Reserves: Up to six to twelve months of mortgage payments.

LendSure’s Jumbo Loan Program

LendSure’s Jumbo loan program makes things simple for those looking to buy high-value properties, offering up to $3,000,000, competitive rates, and industry-leading funding times.

A quick guide to Jumbo loan benefits with LendSure:

  • Up to 90% LTV for loan amounts as high as $1,000,000
  • Up to 80% LTV for loan amounts as high as $1,500,000
  • Up to 75% LTV for loan amounts as high as $2,000,000
  • 30-Year Fixed or 5/1 ARM with 10-Year Interest-Only with 40-Year Term options
  • 12- and 24-Month Bank Statement programs with P&L statements NOT required
  • As little as 48 months’ seasoning for foreclosure, short sale, or loan modification
  • Up to $1,000,000 cash out – Cash out may be used as reserves

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.

Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line. Did you like our guide to Jumbo loans? Check out another blog on the subject.

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