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Maryland Jumbo Mortgage - Learning Center.

A Jumbo mortgage is a home loan that exceeds the standard loan limits set by the Federal Housing Finance Agency's limits. A home must meet appraisal guidelines and the borrower must also credit and income qualify.
Complete a few questions to see if you can get matched with a Jumbo Mortgage that will meet your needs.
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Understanding a Maryland Jumbo Home Loan.

Understanding your income when getting a Maryland Jumbo home loan:
Borrowers should have an established income for two years. If a job change has occurred recently then the current and previous employment information should be provided. It is usually best if the new employment is in a similar profession as the previous employment and that there is little lag time between both employments. 

One month of pay stubs should be saved prior to applying and two years of W2's. If self employed, then 1099 and a Profit and loss statement from an accountant is recommend to help document income. Part time income needs to be reviewed by a lender to determine if it can be used for qualification.

Understanding your reserves when using a Maryland Jumbo home loan:
Additional reserves, funds over and above money needed at closing, may assist in the approval process. Funds for closing or reserves should not be cash on hand. All money should be ‘seasoned’, meaning already in your existing checking, savings, money market or retirement account for 60 days. 

Understanding your credit when using a Jumbo home loan:
Regularly, two years of credit history is recommended with 3 open and active credit lines in good standing. Credit scoring will be used in determining credit approval.

Understanding the property requirement when using a Jumbo home loan:
The property must be appraised by an approved appraiser and meet the lender's requirements (Usually similar to Fannie Mae or Freddie Mac). The loan limits vary dependent on the property locations and lenders guidelines.

Understanding a Maryland Jumbo home loan.

What loan amounts are Jumbo Mortgages and Super Jumbo Mortgages?

1. In general, a standard Jumbo loan is typically a loan greater than the standard conventional loan limit- these numbers may vary by state/county/city. Each property location may offer different guidelines.

2. A Super Jumbo Mortgage Loan is loan amount that exceeds the lender's jumbo loan limit. These non-conforming loans are usually a portfolio product and not a standard lending product.

Jumbo loan rates tend to be higher than conventional home loans.

Jumbo rates vary but typically you can assume that a jumbo mortgage rate will be higher than a standard mortgage. In addition, the loan product tends to be an ARM (Adjustable Rate Mortgage). Fixed rate jumbos may be available, but the rate may be higher.

Jumbos may also be an interest-only arm. With this loan it is crucial that a borrower understands their full loan payment before deciding to utilize this option. The payment can vary greatly at adjustments and there is a possibility of “Payment Shock” when that adjustment occurs. So be sure to understand the margin and index for when the loan adjusts. You will need to meet the specific income, credit and assets requirements.

In some situations, it may be better to use a standard conventional first mortgage and get a second mortgage for the amount that exceeded the conventional loan limit.

Example
Using a conforming product 80/15/5 to avoid the jumbo mortgage rates.

Jumbo loans exceed the conforming loan limit. However, in order to avoid the higher rate on a jumbo, some buyers use a conforming first mortgage (80% of the purchase price or up-to the maximum conforming limit) and then a second mortgage (15% of the amount over the conforming limit) to make up the difference over the conforming loan limit. The remainder (5%) is the borrowers down payment.

Common documents needed when utilizing a Maryland Jumbo Mortgage loan.

Copies of your most recent 2 yrs W2’s for all qualifying Borrowers.
Copies of most recent 30 days of paystubs.
Most recent 2 months of Bank statements (or most recent quarterly statement if applicable).

For refinances - Copy of your current homeowners insurance policy with the agents name and contact number.

Here are some simple steps to follow for Maryland Jumbo mortgage shoppers:

  1. Gather the necessary documents (listed above ‘Common Documents’)
  2. Search out the Maryland conventional/jumbo loan limits in your area. If your loan amount exceeds these limits, you may need a jumbo loan.
  3. Now you are ready to get your Jumbo buyer advice direct from a loan officer. Request a Maryland jumbo loan purchase rate quote or a Maryland jumbo refinance quote.

Maryland 2024 Conventional Home loan limits by Maryland Counties and Cities.
If your loan exceeds these limits you may require a Jumbo mortgage.

List of Services

680+ FICO. 43% Debt Ratio. 6 months reserves required for Jumbo loans. In the Example above, the second lien of 15% would be in the form of a HELOC or subordinate financing provided by another lending institution. First Home Mortgage does not offer HELOCs or other subordinate liens. Adjustable rate mortgages (ARMs) are home loans with a rate that varies. Your interest rate and monthly principal and interest (P&I) payments will remain the same for a defined initial period, then adjust annually when that initial period is over. During the adjustable period, there will be an interest rate cap that sets a limit on how high your interest rate can go. This product is primarily for a borrower with good credit (min 680 FICO) but a low Loan-To-Value (95% max). Debt-to-income ratios apply. Investment condos not allowed.
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