Are you thinking about applying for a jumbo loan in Indianapolis or elsewhere in Indiana? You probably have a lot of questions about jumbo mortgages. Below, we answer some questions we frequently hear from borrowers who are considering applying for non-conforming home loans.

Frequently Asked Questions About Jumbo Loans

• Q: Is it hard to get a jumbo loan?
  A: Not necessarily. Jumbo loan requirements are more stringent than those for conforming loans. But if you meet those tighter requirements, you should qualify for a competitive mortgage.
• Q: Are jumbo loan down payments high?
  A: That depends on a variety of factors, including your qualifications and the lender you choose. You might have to make a high down payment when purchasing a home with a jumbo loan if your credit score and other financial metrics are not as competitive as they could be. But in some cases, it is possible to qualify for a down payment as low as 10%.
• Q: Will a jumbo loan always have a high interest rate?
  A: Jumbo mortgages can have very competitive interest rates. Once again, your choice of lender as well as your qualifications will have an impact on the interest rate you are offered.
• Q: Can self-employed borrowers apply for jumbo loans?
  A: Yes. Self-employed borrowers are eligible to apply for jumbo loans. As with traditional employees, self-employed borrowers need to have high credit scores and low debt-to-income (DTI) ratios to qualify for the most affordable rates. Your income as well as your employment status will be considered when you submit your application. Just as a traditional employee would need to demonstrate that they are steadily employed and on a stable professional trajectory, self-employed borrowers must do likewise.
• Q: Can a first time homebuyer get a jumbo mortgage?
  A: Yes. Some first time homebuyers assume that they will not qualify for a jumbo mortgage. But jumbo loans are not just for experienced homeowners. So long as you meet the same basic requirements that any returning homebuyer would need to meet with respect to income, credit score, and so forth, you should be eligible for a jumbo loan.
• Q: Can a jumbo loan convert into a conforming loan?
  A: If you keep making payments on a jumbo loan and the balance due eventually falls below the conforming loan limits, you might wonder if  your jumbo mortgage will switch to being a conforming loan. But this is not how jumbo loans work. Even after the balance on the loan drops below the conforming loan limits, your jumbo loan will still be a jumbo loan. If you want to change over to a conforming loan, you will need to refinance.

Apply for a Jumbo Loan in Indiana Now

Grandview Lending Inc. can provide you with more information on any of the questions and answers above, as well as answer any other questions you might have about jumbo mortgages in Indiana. To schedule your consultation now, please call Grandview today at (317) 255-0062.