As the real estate market in Arizona heats up again, more people are considering financing their home with a jumbo loan. Can you still get a jumbo loan? Yes – but the rules of today are much different than the rules of yesterday. Here are some general guidelines for lenders who will actually lend under the Arizona jumbo mortgage programs available.
Arizona Jumbo Mortgage Loan LTV Requirements:
It used to be that lenders would be willing to lend you up to 100% to millions of dollars. Today, there are reduced LTV requirements and as a general rule, as the loan amount goes up, the LTV allowed goes down.
- For loans up to $900,000 expect the loan to value ratio to be around 75%.
- For loans up to $1,200,000 expect the loan to value ratio to be around 60%.
- For loans up to $1,500,000 expect the loan to value ratio to be around 50%.
Credit Score Requirements
Chances are that anyone who is currently thinking about a jumbo loan has good credit. If your credit is above 750, you should be fine. If it is less than that – double check the credit score requirements with your loan officer.
Income Requirements
Generally speaking, you will want to have no more than 35% of your monthly income be required to pay your monthly mortgage payment.
Jumbo Mortgage Rates
So what kind of rates are there currently for Jumbo loans? Generally speaking, the mortgage rates for Jumbo loans in Arizona are in the 5%’s for any adjustable rate (3/1, 5/1 ,7/1) and in the 6%’s for any fixed rate Jumbo loan.
Is the jumbo loan market alive? Yes. It is just different than it was a few years ago.
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