Does a jumbo project need a jumbo loan?
Maybe. Just like there’s a tool for every job, there’s a loan for just about every project and size. If you’re about to embark on a jumbo-sized project and need financing, you may need jumbo-sized loan to get the job done.
What is a Jumbo Mortgage?
A jumbo loan is a mortgage for people who need to borrow over $510,400, and can go as high as $5,000,000 (at Webster). In the mortgage world, we call this a non-conforming loan. A conforming loan is a loan $510,399 or less. Government agencies set these limits, and they vary by area.
What Can A Jumbo Loan Be Used For?
- Construction financing
- Second homes
- Investment properties with up to four units
Due to the increased financial risk, most lenders charge slightly higher interest rates on jumbo mortgages as compared to traditional mortgages.
Why Webster for a Jumbo Loan?
Here are a few things that make Webster a great bank for your jumbo financing needs:
- Local Underwriting and Processing - as we are a regional bank
- Competitive rates and Flexible Financing
- Less Required up Front - Most lenders require a 20% minimum down payment. However, at Webster, we offer jumbo loans for a 10% minimum down payment, depending on the size of your loan.
- No Pre-Payment Penalties - Another thing that makes our jumbo loans attractive is that there are no pre-payment penalties
- We Finance Investment Properties - Not many lenders offer jumbos loans on investment properties. But at Webster, we can help finance investment properties.
Related Article: Financing Home Improvement and Construction Projects