Can A First-Time Buyer Get A Jumbo Loan?

Can a first-time buyer can get a jumbo loan? Yes, however, lenders often scrutinize this type of transaction with more requirements to qualify than they have for a move-up buyer. 

One concern they have with a first-time buyer is payment shock. Payment shock is defined as the amount exceeding the current housing expense. For example, the lender may have a guideline stating that they will fund a jumbo loan for a first-time buyer only if the payment shock is less than 200% of the current rent. 

A lender will want to verify the rental payment history of a first-time buyer. Be prepared to provide at least 12 months of cancelled checks (some lenders ask for 24 months). Hopefully all of the rental payments have been made on time. 

What if you live at home with your parents? You might be out of luck! The lack of a rental history can be the cause of a turn-down for a jumbo loan application.

 

Courtesy of GWhalin

 

Your credit score as a first-time buyer is extremely important when you apply for a jumbo loan. Be prepared to have a score of 720 or more! 

You have met of all the above requirements - is there anything else you need to be concerned with as a first-time buyer? Yes. There may be a loan amount limit. For example, you may be limited to a $1 million jumbo loan amount. 

It is important that you know that first-time buyer guidelines for a jumbo loan vary from lender to lender. For example, a lender may not have a guideline concerning payment shock, but may have a maximum loan limit for a first-time buyer.  

With this knowledge of what lenders are concerned with, you can protect yourself by volunteering this information when applying. Ask your lender what there requirements are for a first-time buyer. In addition ask your real estate agent for a referral to a jumbo lender that has lots of experience closing jumbo loans.

How A Stock Loan Works

 

 

 

 

Do you need help making an effective financial decision? Call or text me at (650) 222-0386, or e-mail me.

 
 

 

 

 

 

 

      

 

 Opes Advisors is licensed by the CA Department of Business Oversight 4150089, CA Bureau of Real Estate 01458652, Oregon ML -4902, Washington CL-1178435 and NMLS 235584. Equal Opportunity Lender. Opes Advisors is a registered investment advisor with the Securities and Exchange Commission (SEC). ©2014 Opes Advisors, Inc. All rights reserved.              

Phil Caulfield
411 Borel Avenue #320
San Mateo
CA
94010

(650) 222-0386

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Comment balloon 2 commentsPhil Caulfield • February 28 2012 05:48PM
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