Just two short years ago, the nation was scrambling to figure out how to live in a pandemic world. A lot of American industry barely weathered the economic conditions, but there were some sectors that not only survived – they soared. Two and a half years later, the real estate is still going strong. Many areas experienced the lowest inventory of houses on the market ever witnessed. When you combine that with the historically-low interest rates, the seller’s market is not going anywhere. If you are looking to purchase a home, especially a high-priced one, obtaining a loan before you even put your bid in is critical. There are other options for jumbo loans in South Carolina.
What is a Jumbo Loan?
By definition, a jumbo loan is a mortgage loan that is above the limits set by Freddie Mac and Fannie Mae, which are the government-backed US home loan networks. Jumbo loans can be taken out for primary residences, commercial properties, and second homes. The exact limit of where a jumbo loan is cut off is determined by the mortgage lender, but in general, they are riskier loans because they are usually well above the average borrowed amount. This means they are unlike “conforming” loans, which conform to a specific parameter or limit.
Why are Jumbo Loans Hard to Obtain?
There are several reasons jumbo loans are more difficult to obtain. The first is that lenders, who typically resell mortgages on secondary markets, have a harder time reselling the higher-priced loans. That means they have to cover the loan themselves and can’t assign the risk to someone else. You also need a much higher credit score for a jumbo loan versus a conventional one. Sometimes a high score needs to be combined with high cash reserves and a considerable down payment. Finally, due to the risk that is assumed with a jumbo loan, they typically come with a much higher interest rate than regular loans, which can push someone’s payments too high for their debt to income ratio.
What are Non-QM Loans?
Non-QM loans are non-traditional loans that require different documentation standards, terms, and conditions. HomeSpring offers a variety of packages to help those who have the means (but simply can’t prove it on paper) to obtain a loan to purchase the house of their dreams. We understand that sometimes borrowers are credit-worthy, even if they don’t have the documentation that traditional lenders require. We offer a jumbo loan with a 5% down payment, along with other products such as asset-based loans, bank statement loans, recent credit event forgiveness loans, and interest-only loans, depending on your unique set of circumstances and limitations.
Never before in history has a seller’s market been so competitive. If you want to obtain the home of your dreams, it is all about timing and having approval before you even place a bid. At HomeSpring Mortgage, we understand that all borrowers come from different backgrounds that present differently on paper. Our mission is to find a loan package that works to help you realize your dreams. Contact us to get started today! There are jumbo loans in South Carolina that can suit your needs.