If you are shopping for a high value property in Chicago or elsewhere in Illinois, you might need to borrow more money than is possible using a conventional conforming loan. What can you do if you need to exceed the Fannie Mae and Freddie Mac loan limits? A jumbo loan could open the door to your dream home.
What is a Jumbo Loan?
A jumbo loan is a non-conforming loan. In other words, it is a loan for an amount that is larger than the Fannie Mae and Freddie Mac loan limits.
Like conforming loans, jumbo loans are conventional loans. That means that they are not insured by a government agency like the FHA or VA.
Anyone with strong qualifications is welcome to apply for jumbo financing. That includes repeat and first time homebuyers.
Do You Need a Jumbo Loan in Chicago?
To check if you need a jumbo loan to purchase a home, you need to check the loan limits for your county.
For Chicago, we need to look at the limits for Cook County, which you can see below.
In some high-cost counties across the country, there are higher conventional loan limits. But the entire state of Illinois has the same loan limits you see listed above.
Do You Qualify for a Jumbo Loan in Illinois?
As with any other type of loan, to be approved for a jumbo loan, you need to meet certain qualifications. These include:
- A high credit score
- A low debt-to-income ratio
- The ability to afford a down payment of 15% or more
- Six months of cash reserves
- Steady employment
In addition, two appraisals are sometimes required to qualify for a jumbo mortgage.
It is true that the requirements for approval for a jumbo loan are more rigorous than those for a conventional loan. But homebuyers are often surprised by just how accessible and affordable jumbo loans can be.
The loan process itself is also similar to that of applying for a conforming loan. At MidAmerica Bancorp, Inc., we have helped many homebuyers to quickly complete the process and close on their dream homes.
Apply for a Competitive Jumbo Loan Now
Are you ready to move into your new home? We work with customers throughout the state of Illinois, as well as Indiana and Florida. To get started now, please give us a call at (708) 237-4050 to schedule your free consultation.