Conventional & Jumbo Loans in Royal Oak Michigan
Are you in need of a Conventional or Jumbo Loan in Royal Oak Michigan? There is much to consider when choosing a home loan. The value of conventional and jumbo mortgages varies by state, and even by county. Working with a trusted and highly experienced mortgage broker in Royal Oak is the key. Let us help you make the best choice for your home loan.
Jumbo Home Loans
A jumbo home loan, or jumbo mortgage in Royal Oak Michigan is a type of home loan financing that surpasses the limit established by the Federal Housing Finance Agency (FHFA). A jumbo home loan is not eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac and are designed to finance luxury properties in Royal Oak Michigan and the rest of America. Since financed amounts are typically larger for luxury homes, the home loan amount can often surpass the FHFA limit. With that said, a jumbo home mortgage might be perfect for the house you desire. Furthermore, jumbo mortgages in Royal Oak Michigan and the rest of the country normally come with more stringent requirements and may have new tax limitations.
Conventional Home Loans
A conventional loan, also known as a conforming home loan, is a home loan that is not insured or guaranteed by the federal government. Conventional loans adhere to guidelines set by Fannie Mae and Freddie, and your credit history is important in obtaining your conventional loan. When most people need a conventional home loan, they think about going to their bank first. But, the truth is — your bank represents just one lender and offers limited home loan programs. Plus, in today's climate, banks are becoming more restrictive by the day. When you partner with us, you get an unbiased, wide-angle view of home lending and creative solutions representing multiple lenders and programs.
Non-conforming Home Loans in Royal Oak, MI.
A jumbo loan, or sometimes called a luxury home loan is your only option if you need to borrow over the current FHFA limit for a home purchase or refinance. Non-conforming home loan rates in Royal Oak Michigan can be higher, lower, or the same as conforming loan amounts in the local area and other states.
Since the current market fluctuates, jumbo home mortgage loans in Royal Oak Michigan and around the country typically are stricter with their requirements than in past years, however, the typical home loan process is similar. You will typically need a 5%-20% down payment depending on the loan amount, and you may potentially receive lower adjustable or fixed rates offering flexibility for financing a larger loan.
Ascend Mortgage offers many great options such as our jumbo home loan up to $920,000 with only 5% down, and many other purchase options above $920,000 with only 10% down.
Luxury Home Loans or Jumbo Loans in Royal Oak, MI.
Luxury home mortgages are best suited for families looking to purchase a large or luxury home that exceeds the limits of a standard conforming home mortgage loan. As stated previously, the limits on conforming mortgages are set by FHFA and are based on the area of the country in which you live. So, if you live in Royal Oak Michigan, or Oakland County, the limits may be different if you lived far up north or in another state.
For most areas in the USA, the limit on a conforming mortgage is set each year and does change. Call us to see what the current limits are for Royal Oak Michigan or other areas in the country. For areas of the country with a high cost of living, the luxury home loan / jumbo mortgage limit may be much higher. Plus, jumbo home loans are a type of non-conforming loan and are not necessarily harder to get, but there are typically more restrictions than conventional mortgage loans in Michigan.
Document requirements for Jumbo Home Loans in Royal Oak Michigan:
Most luxury home loans in Royal Oak Michigan and around the country have standard documents that are required. In some cases, additional information is required, but here are the standard documents for a typical jumbo home loan.
- 2 years of tax returns
- Current and previous paystubs (2 previous pay stubs if you are paid on a weekly basis)
- 1065 federal partnership tax returns for the past 2 years – if applicable
- 1120 corporate income tax returns for the past 2 years
- YTD profit and loss statements
- K-1 and/or S-Corps for the previous 2 years