Jumbo Loans with Less than Perfect Credit.

Common question: Are there any Jumbo Loan options available if you have less than perfect credit?

Jumbo loans are mortgage loans that are over the conforming Loan Limit. For most of Colorado, that is loans over $453,100 (up to 679,650 in some areas). The Jumbo Loan market has many different investors with many different guidelines. Most require a 700+ credit score, clean credit history, limited debt-to-income ratio, and a sizable down payment.

If you have been denied a Traditional Jumbo Loan OR CONVENTIONAL LOAN, you may be surprised there could be Loan Options available for you. Portfolio Loan Options offer a short-term solution to help purchase a home now. Here are some common questions and answers.

Q:  Is there any way to shorten my waiting time after a Bankruptcy, Foreclosure, or Short-Sale?

A: Yes, absolutely. Many Lenders have strict guidelines for length of time a Bankruptcy, Foreclosure, or Short-Sale. A major reason people look at Portfolio Options is to shorten that waiting period.

In some cases, Portfolio Programs can shorten the wait time of a Short-Sale/Foreclosure to just 1 day after the event or 12 months after a bankruptcy.

Q:  Minimum Credit Score?

A: Depending on your overall credit profile it is possible to qualify for a Portfolio Loan with a credit score down to 580.

Q:  Minimum Down Payment?

A: The down payment requirement can adjust depending on your overall situation. If you have less than perfect credit, you should expect between 10-20% down payment. Well qualified borrowers can qualify with as little as 5% down (and NO mortgage insurance).

Q:  Are portfolio loans more expensive?

A: Because of the additional risk involved – these loans do have higher fees and rates. It is common for these loans to have higher origination and discount fees charged along with a higher interest rate. However, this will reflect your overall financial/credit situation.

Q:  What are the terms of the loans?

A: 5/1 ARM ,  7/1 ARM, and 30 Year Fixed Rates. Many who use these programs will do a shorter-term ARM in anticipation of refinancing into a more traditional mortgage.

Q:  What is the Maximum Loan Amount?

Borrowers can be eligible for up to $2.5 million, depending on your overall qualifying picture.

Hopefully, this helps you sort out some of the available options for you. Please feel free to leave your contact information below to learn more from a Local Home Loan Expert.

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Andy T

I am Originally from Chicago and moved to Denver, CO with my wife and puppers from Springfield, IL. I have been with Diamond Residential Mortgage for over 5 years, spending most of that time in the State Capital. Whether you are seasoned real estate investor or a first-time buyer, I strive to provide every client with the best service and communication possible. At Diamond Residential Mortgage, we offer a wide variety of mortgage products to make sure every client gets a mortgage that meets their specific needs. I love the one-on-one philosophy and enjoy working closely with clients and other real estate professionals. Feel free to drop me any mortgage related questions.

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