It’s no secret that prices in Arizona are going up – way, way up. It’s now the standard that your average Arizona mortgage is now up in the Jumbo Mortgage space. Heck, I remember when I first moved to Tempe, AZ my first home was only $90k for a 4 bedroom, 2 bath home – with a pool! Now the median sale price is around $465,000 and according to Realtor.com Phoenix topped the list increasing by 32% year over year from 2020 to 2021.
Typical Arizona Mortgage is in the Jumbo Mortgage zone
It’s no longer high-end luxury home when the Jumbo loan limit is currently at $647,200 – it’s just a normal 3-5 bedroom home when you are talking about more desirable locations like Scottsdale, Paradise Valley and Sedona.
What is an Arizona Jumbo Mortgage or Loan?
A Jumbo Loan is a conventional home loan that surpasses the conforming lending limits of Freddie Mac and Fannie Mae.
These limits are the same all throughout Arizona – it does not matter if you live in Scottdale, Gila Bend or Flagstff in 2021 conforming loan limit amount is $647,200any loans that exceed this amount is considered a Jumbo Loan.
Jumbo loans at up to 95% LTV on purchases.*
See information below on what a jumbo loan is in detail and how to qualify for financing.
*California Properties Only
What is a Jumbo Loan?
A Jumbo Loan is one that exceeds the county guidelines for conforming and high balance conforming loan limits set by Fannie Mae and Freddie Mac.
Valor Lending Group has a number of full document financing solutions for purchase, refinance, and cash out Jumbo Loans, we have options that allow you to secure and maintain the luxury property of your dreams.
Why Use Jumbo Loans?
Traditional mortgage lenders require tax returns, W-2s, and paycheck stubs in order to determine monthly income. For salaried and hourly borrowers, the lenders look at gross income for qualifying purposes. But for self-employed borrowers, traditional mortgage lenders look at net income, the adjusted gross income showing on tax returns. The qualifying income is viewed in conjunction with all debts, and a debt-to-income (“DTI”) ratio is calculated. Traditional mortgage lenders would be required to have a DTI of no more that 35%, however, at Valor Lending Group our funding sources typically allow up to 50% DTI and a lower credit score and down payment requirement.
How Do You Qualify For A Jumbo Loan?
You qualify for a Jumbo Loan in the same way as a conventional or high balance loan, with full documentation, such as 2 years tax returns, W2s, most recent pay stubs, etc.
Valor Jumbo Loan Programs | Arizona Jumbo Loans Highlights:
- Up to 95% LTV
- Max Loan Up to $30MM!! (Most lenders cap at $2M-$3M)
- Flexible Guidelines
- 15, 20, 25 & 30 Year Fixed Interest Rates
- Valor boasts the very best communication, service, rates and performance in the industry
- Valor ensures the very best pricing by shopping with many direct lenders so you don’t have to!
Who Is A Jumbo Loan Right For?
At Valor Lending Group, we have Jumbo Loans perfect for the high income and strong asset borrower who is looking to buy or refinance a luxury home in high end markets.
In addition, we also offer full documentation low rate loans, stated income loans, and hard money loans.
Advantages and Disadvantages of Jumbo Loans
1) Pros of Jumbo Loans
- Higher Loan Amounts
- Luxury Homes purchase (better schools, lower crime rates, larger homes)
- No Mortgage Insurance (for some lenders)
2) Cons of Bank Statement Loans
- Higher Interest Rates
- Lower Leverage
- Lower debt to income ratio, typically at 35% DTI
- Higher reserve requirements
- More stringent underwriting guidelines
The Bottom Line
Jumbo loans provide borrowers with the opportunity to acquire much higher value, larger homes in the most desirable communities throughout the country. Additionally, borrowers will not have to come in with the difference in cash above the conforming loan limits. When seeking these higher-end luxury homes. Not every lender offers jumbo loans, it is best to identify and partner with a jumbo loan specialist such as Valor Lending Group.
CALL 480-773-0714 or EMAIL ME for immediate attention to your scenario!
Valor Lending Group can fund your fast-hard money loan up to $10mm in as little as 7 days often without an appraisal.
Valor Lending Group offer EVERY loan in the book!
Please do not hesitate to call on me for any scenarios.
I look forward to an opportunity to demonstrate my prompt and professional service.
Recap of our Loan Products:
- Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
- Stated Income Loans (Great for business owners and self employed ) No tax returns!
- 100% financing is available (we can cross collateralize other properties if there is enough equity)
- Valor VA Home Loan 100% financing up to $1.5MM
- Rental Property Loan – No tax returns or DTI calculation! Based on subject property cash flow – No DSCR Coverage needed!
- Flipper & Rehab Loans (Flip a property with one of our many options)
- 2nd Position Loans up to $5mm
- Raw Land & Lot Loans
- Ground up Construction for spec homes, custom homes and commercial ground up.
- Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
- 5% down Jumbo’s with NO MI up to $2mm / 10% down up to $3mm
- Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
- Acreage Properties
- Commercial Loans up to $500mm
- 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
- Foreign Nationals Loans (no social security or residency required)
We also offer:
- Conventional Conforming Loans (under $510,400)
- High Balance Conforming (from $510,400-$765,600)
- Jumbo Loan Financing to $10 Million / Super low rates! / 10% down Jumbo to $3mm
- FHA, USDA
- Reverse mortgages up to $1 Million Value
- Cash Out Refinancing
**Rates and terms subject to change without notice
For the latest mortgage news, check out MortgageNewsDaily
Call 480-773-0714 or Email James today with any mortgage questions!
About the Author
James Romero III
Loan Officer
DRE#02155134
NMLS # 1978048
Valor Lending Group
“Pride in Lending”
Petco Park
Diamond View Tower
350 10th Ave – 10th Floor
San Diego, CA
Direct: (480) 773-0714
Office: (619)344-2640
Fax: (619) 872-2400
jromero@valorlending.com
