Are you looking to purchase the home of your dreams?
Dream BIG and let Valor Lending Group guide you along in the mortgage loan process!
Updated Jumbo Loans are available for you TODAY!
If you are a real estate investor, self-employed, or full document qualifier we have many different loan options that will fit all your needs.
We provide jumbo loan financing for primary residences, second homes, or investment properties.
Valor Lending Group has helped thousands of Californians and real estate investors nationwide. We are excited to announce we are now serving all of Arizona. There is no question too big or too small that we won’t be able to help you with. We pride ourselves on our top-notch communication skills to tackle any situation that comes our way. Reach out to us today, and one of our loan officers will get back to you ASAP with advice you can trust.
You can Trust Valor Lending Group with your dreams of the future, so don’t wait, let us get started on a scenario for you TODAY!
What you will learn:
- What a Jumbo Loan is
- How to qualify for a Jumbo Loan
- Why use a Jumbo Loan
- What a Jumbo Loan looks like
- Self-employed requirements
- Employed requirements
- Qualifying hourly employee income
- Qualifying salary employee income
- Income, debits, and credits
- Down payment, rates, and costs
- Owner Occupied vs. Non-Owner Occupied
- Owner Occupied
- Non-Owner Occupied
- Jumbo Bank Statement Loans
- Jumbo Loans 2-4 Units
- VA Jumbo Loans
- Valor Jumbo Loan Highlights
What is a Jumbo Loan?
A Jumbo Loan exceeds the county guidelines for conforming and high balance conforming loan limits set by Fannie Mae and Freddie Mac. (Arizona county limits here) (California county limits here)
Valor Lending Group has several 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 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 shown 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 than 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.
What Does a Jumbo Loan Look Like?
1) Self-Employed Requirement
Jumbo lenders typically require a borrower to be self-employed for a minimum of two years. This is verified either through appropriate professional licenses, business licenses, or sometimes a letter from a tax preparer. Additionally, 2 years of business income tax returns are required for business owners to verify no decline in business income year over year. Jumbo lenders may also consider the W2 earnings of a spouse or co-borrower in terms of qualifying income.
2) Employment Requirement
Once again, jumbo lenders review 2 years of consecutive tax returns, W2s, 1099’s, and pay stubs to determine qualifying income. Additional types of income include social security, pensions, retirement monthly distributions, annuities, etc. Jumbo lenders will look to obtain your most recent 30 days’ paystubs and a certified employment offer letter stating the gross salary, start date, and benefits (for those who are starting a new job in the same industry).
(a) Qualifying Hourly employee income
For hourly W2 employees, the lender will use your hourly rate of pay, averaged with your most recent 2 years’ tax return income. Additionally, the lender will qualify for a two-year average of your commission, bonus, vacation pay, sick pay, etc. (if applicable).
(b) Qualifying Salary employee income
The lender will always count 100% of your current salary and does not use a two-year average as your payment is guaranteed year to year per your employment contract. To the contrary, the lender will qualify a two-year average of your commission, bonus, vacation pay, sick pay, etc. (if applicable).
3) Income, Debts & Credit
After determining the total qualifying income, the next step is to total up all debts, including the new mortgage payment, property tax, insurance, and homeowners association (HOA). All monthly debts are viewed in conjunction with a total monthly qualifying income, and most lenders will allow up to 35% debt-to-income (“DTI”) ratio when qualifying borrowers for a Jumbo loan. However, Valor Lending Group has funding sources that will allow up to 50% DTI on a jumbo loan. Most jumbo lenders require a minimum 700 credit score, although each has its guidelines. Credit requirements for jumbo loans are more stringent than traditional lenders.
4) Down Payment, Rates & Costs
The minimum down payment on a jumbo loan is usually 20%. A handful will allow as low as 10%, although 10% down is becoming increasingly rare. These loans will have noticeably higher interest rates due to a higher default risk factor, and lack of investors buying 10% down jumbo mortgage-backed securities on the secondary market.
Additionally, the 10% down jumbos will require higher credit scores and liquid reserves (12 Months), and a lower debt-to-income debt-to-income ratio (DTI). Larger down payments say 20% or higher, do often allow for a better rate and term. Gift funds from close relatives are usually allowed, to be applied toward the down payment. Although, many jumbo lenders may not allow gift funds for liquid reserves. Rates for jumbo loans are generally higher than traditional conforming loans (based on increased perceived risk to jumbo lenders), but all other typical loans fees are similar, such as origination points, broker and lender fees, appraisals, title, and escrow, etc.
5) Owner Occupied vs. Non-Owner Occupied
(a) Owner Occupied
Owner-occupied jumbo loans, including second homes, offer higher leverage of up to 90% loan to value (LTV) as well as lower interest rates, and lower credit score requirements. Also noteworthy, This loan can be vested in your name or family revocable trust.
(b) Non-Owner Occupied
Non-owner-occupied jumbo loans will require a minimum of 20% down, higher interest rates, and higher credit score requirements. This loan can be vested in your name or family trust, and in addition, can be vested in an LLC or corporation, etc.
6) Jumbo Bank Statement Loans
It is also possible to get a “jumbo bank statement loan.” These are simply bank statement loans above a certain dollar amount, which is higher or lower depending on the county. Depending on the jumbo loan lender, bank statement loans can go up to $10 million or more.
7) Jumbo Loans 2-4 Units
Jumbo loans are also available for 1–4-unit residential properties. Jumbo loans for 2-4 units allow for higher loan limits depending on the number of units. As you increase the number of units; you will see a decrease in the loan to value. The highest loan to value is offered on a 1-unit property (SFR, Condo, or Townhome).
VA Jumbo Loans
VA Loans offer financing up to 100% of a property’s value and feature both fixed and adjustable-rate loans. And there is NO down payment up to $1,500,000.00!
Valor Lending Group has VA Jumbo Loans for veterans, active-duty members, and their families. The qualifications for VA Jumbo Loans are different from a typical VA loan.
To qualify for VA jumbo loans, you need to have a FICO score of 640 or higher.
- With a FICO score of 640 you will be required to come with 10% down (with loans that exceed 1.5M).
- With a FICO score of 680 you will be required to come with 5% down (with loans that exceed 1.5M).
- And if you do not want to come with a down payment you will have to have a FICO score of 740 or higher.
*This information and requirements may vary depending on lender policies
Valor Jumbo Mortgage Loans | Highlights:
- 90% Max LTV | As Low as 10% Down!
- 40-year fixed term with IO
- Max Loan Up to $25MM!! (Most lenders cap at $2M-$3M)
- Flexible Guidelines
- 15, 20, 25 & 30 Year Fixed Interest Rates
- Non-occupant co-borrower + Gift Funds
- Interest-Only with 680 + Fico
- 90% LTV cash-out (Up to $1.5M)
- 2-year seasoning – short sales + bankruptcy
- 3-year seasoning – foreclosure
- As low as 600 Fico
- DTI Allowed up to 50%
- 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!
Other Programs we Offer:
- Conventional Conforming Loans
- High Balance Conforming
- Jumbo Loan Financing |10% down Jumbo to $1.5mm
- FHA, USDA
- Reverse mortgages up to $1 Million in Value
- Cash-Out Refinancing
We look forward to the opportunity to serve you!
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