When it comes to financing a home, borrowers often have to decide between jumbo and…
Are you ready to upgrade to a luxurious home in Kansas City? If so, you might want to consider a jumbo mortgage to help finance your dream property. Jumbo loans are an excellent option for homebuyers looking to purchase a high-value home that exceeds the conforming loan limits.
In this post, we’ll take a closer look at jumbo loans in Kansas City, how they work, and why they may be the perfect fit for your next home purchase.
What are Jumbo Loans?
A jumbo loan, also known as a jumbo mortgage, is a home loan that exceeds the maximum loan limits set by Fannie Mae and Freddie Mac. These conventional loan limits are adjusted annually and depend on the location of the property. In most areas of the United States, the limit for a single-family home is $726,200.
If you’re looking to purchase a home that exceeds these loan limits, you’ll need a jumbo home loan. These loans typically have stricter requirements than traditional mortgages and may require a higher credit score and down payment.
Why Consider a Jumbo Loan in Kansas City?
Kansas City is known for its beautiful homes and thriving economy, making it a popular destination for homebuyers. If you’re looking to purchase a high-value property in Kansas City, a jumbo loan may be the perfect fit.
Jumbo loans can help you finance a home that exceeds the conforming loan limits. This is especially important in a city like Kansas City, where high priced homes are located. With a jumbo home loan, you can secure the financing you need to purchase your dream home. And without sacrificing your financial goals.
How to Qualify for a Jumbo Loan in Kansas City?
Qualifying for a jumbo loan in Kansas City can be more challenging than getting a traditional mortgage. Lenders typically have stricter requirements for jumbo loans due to their higher risk. Here are some of the requirements you’ll need to meet:
- Higher Credit Scores: To qualify for a jumbo loan, you’ll typically need a credit score of at least 700. However, some lenders may require a score of 720 or higher.
- Larger Down Payment: Because jumbo loans are riskier for lenders, you’ll likely need to make a larger down payment. Most lenders require a down payment of at least 20%, but some may require up to 30%.
- Lower Debt-to-Income Ratio: Your debt-to-income ratio (DTI) is the percentage of your monthly income that goes toward paying off debt. Most lenders prefer a DTI of 43% or lower for jumbo loans.
- Reserves: Lenders may also require you to have several months of cash reserves in your bank account to cover your mortgage payments.
Working with a trusted lender like Metropolitan Mortgage Corporation can help you navigate these requirements and secure the jumbo loan you need to purchase your dream home.
Advantages of Jumbo Loans in Kansas City
Jumbo loans offer several advantages for homebuyers in Kansas City. Here are just a few:
- Higher Loan Amounts: Jumbo loans allow you to finance higher loan amounts than traditional mortgages, making it easier to purchase a high-value property in Kansas City.
- Competitive Rates: While jumbo loans typically have higher interest rates than traditional mortgages, they often have competitive rates compared to other financing options for high-value properties.
- Flexible Terms: Jumbo loans come in a variety of terms, including fixed-rate and adjustable-rate options. This allows you to choose the loan that works best for your financial situation and goals.
- Customized Loan Options: Because jumbo loans are not backed by government-sponsored entities like Fannie Mae and Freddie Mac, lenders have more flexibility in creating customized loan options to meet your specific needs.
Choosing Metropolitan Mortgage Corporation for Your Jumbo Loan in Kansas City
If you’re looking for a reliable lender for your jumbo loan in Kansas City, look no further than Metropolitan Mortgage. As a locally owned and operated lender, we understand the Kansas City market. We can help you find the right jumbo home loan for your needs.
At Metropolitan Mortgage Corporation, we offer a range of jumbo loan options with competitive rates and flexible terms. Our experienced loan officers will work with you to determine your eligibility. We will guide you through the application process, and make your dream home a reality.
If you’re looking to purchase a high-value property in Kansas City, a jumbo home loan can help make it possible. Although they may have stricter requirements than traditional mortgages, jumbo loans offer several advantages and can provide the financing you need to buy your dream home.
When considering a jumbo loan in Kansas City, it’s essential to work with a lender you can trust. Metropolitan Mortgage Corporation has been serving the Kansas City community for over 25 years and has the expertise and experience to help you secure the financing you need.
We have offices located in Kansas City and Overland Park. Contact us today to learn more about our jumbo loan options and take the first step towards owning your dream home in Kansas City.