Jumbo Loans and The Pandemic

Jumbo Loans and The Pandemic

At the height of the Coronavirus pandemic most banks and lenders put a firm halt on all jumbo loan products. Despite being a highly qualified buyer this meant that loans above conforming limits simply were not available. Luckily, these restrictions have eased and jumbo loans are becoming more readily available again.

It is important to understand what exactly a jumbo loan is. A jumbo loan simply means that you are asking to borrow above the specified amount of a confirming loan limit. Conforming loan limits are set by counties within your state. For instance, in Ventura County the conforming loan limit is: $739,450. However, in the neighboring county of Los Angeles the conforming loan limit is: $822,375. Despite high real estate prices the opposite neighboring county of Santa Barbara only has a conforming loan limit of $660,100.

The national conforming loan limit is $548,250. However, in states and specific counties, like California where real estate prices are very high the conforming loan limits are raised. Thankfully, this is allowed because qualifying for a jumbo loan can be more difficult than qualifying for a conventional loan. Things you should be prepared to perform when entering into a jumbo loan include: 12 months bank reserves, minimum 20% down payment, excellent credit scores, low debt to income ratio.

If you have any questions regarding jumbo loans and how they are affect your purchasing power post-pandemic our team is extremely skilled in helping our buyers in this area. Due to the home sale prices in our area jumbo loans are quite common and we’re happy to help in find the perfect fit not only in a home but also in a mortgage that makes sense. Our team of professional Moorpark Realtors and Simi Valley Realtors are here to help in whatever capacity you need.