There are many beautiful luxury properties for sale in Tustin, California. To borrow enough to purchase one of these homes, however, you might need to exceed the Fannie Mae and Freddie Mac conforming loan limits. Thankfully, you can move forward with your purchase with a jumbo loan.
What is a Jumbo Loan?
A jumbo loan is also called a “non-conforming” loan. It is a type of conventional loan, which means it does not have government agency backing.
When a loan exceeds the Fannie Mae and Freddie Mac limits for conforming loans, it is not eligible for purchase by these government-sponsored enterprises. That is what differentiates it from a conventional conforming mortgage.
Do You Need a Jumbo Mortgage in Tustin?
To figure out whether you need a jumbo loan to buy a home in Tustin, you need to look up the conforming loan limits for Orange County, where Tustin is located.
These are the conforming loan limits for Tustin, CA:
These are also the conforming loan limits for Los Angeles County.
For most counties nationwide, the conforming loan limit for a single unit is only $647,200.
But real estate is more expensive in Orange County and Los Angeles County than it is in most locations. That is why the conforming loan limits are higher in these counties.
How Do You Qualify for a Jumbo Loan in California?
The application processes for conforming and non-conforming mortgages are quite similar. In fact, we will assess the same basic factors.
- Your credit score
- Your debt-to-income (DTI) ratio
- Your income
- Your down payment ability (15% minimum)
- Your employment status
- Your employment history
- Your cash reserves (6 months minimum)
One difference in applying for a jumbo loan as opposed to a conforming loan is that you may need to get two appraisals.
Can you buy your first home with a jumbo loan? Yes. First time homebuyers are as eligible as returning homebuyers for jumbo mortgages. You just will need a strong borrower profile.
Buy a Home with a Jumbo Loan in Tustin or Beyond
If you are ready to move into your luxury dream home in Tustin, Irvine, Anaheim, Los Angeles, or anywhere in California, we can’t wait to help you apply for a jumbo loan. Please give us a call today at (949) 751-6940 to schedule your consultation. We serve homebuyers in all 50 states.