If you are looking at more expensive properties in Utah, you’ve probably heard the term jumbo loan.
Any home loan that exceeds the conforming limit ($417,000 throughout most of the U.S.) will be subject to different, tougher requirements – set forth by the group of investors behind the lender issuing the loan.
For Utah specific 2017 conforming limits, see my article What is a Conventional Mortgage
Here is what you should expect when applying for a Utah Jumbo loan:
After comparing a few different lenders that offer Utah Jumbo loans, I came up with an eligibility matrix that will explain the basics.
As always, your opinion and questions are welcomed by e-mail to firstname.lastname@example.org
For Utah Jumbo loan amounts up to $850,000, it is worth mentioning the following alternative.
While most jumbo loans require a minimum downpayment of 20%, some mortgage insurance companies like Radian will insure part of a jumbo loan, and help lenders provide financing.
In this situation, the borrower only needs to come up with 10% downpayment.
The 90% loan to value eligibility matrix looks like this:
There are other ways to help you purchase or refinance a higher priced home in Utah without applying for a jumbo loan. The most obvious solution is to provide a higher downpayment, making sure that the requested loan amount fits the conforming Utah County limits.
If that’s not possible, then you will need to shop around for a lender that will allow a first and a second mortgage, where the first mortgage is a conforming loan, and the second is a HELOC (Home Equity Line of Credit) or an Equity Loan (fixed second mortgage). Not easy, but doable.
Please contact me with your questions, either by e-mail at email@example.com or by phone at (801) 473-3154 (call/text).
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Happy House Hunting!