A jumbo mortgage loan is a loan whose amount exceeds the borrowing limit set by Fannie Mae and Freddie Mac for conforming loans. For the majority of counties, the current limit in Colorado is $510,400 for a single-family unit. In Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties the limit is $575,500. In Lake, San Miguel and Summit counties the limit is higher at $625,500. Routt, Boulder and Eagle counties have limits of $638,250, $644,000 and $750,950 respectively. The highest limit, at $765,600, is in Garfield and Pitkin counties. So if you take a mortgage with an amount that exceeds that set limit you will have taken a jumbo mortgage.
Jumbo loans are necessary for many reasons, but the biggest advantage to you as a homebuyer is that they allow you to make high-cost home purchases. It is practically impossible to finance some types of homes in certain Colorado counties. A good example is Douglas County where the average list price is $529,500. In some smaller more affluent counties like San Miguel, the average list price for a home is around $995,000.
The high value of a Colorado jumbo loan makes it riskier from the perspective of the lender. That is why you may face stringent qualification requirements compared to when you are applying for a conventional or government backed mortgage. For instance, 20% down payment is a common requirement, but some Colorado lenders can go as low as 10% or 15% down as long as you have sufficient income and assets. Another common requirement is a credit score of at least 680.
The more strict qualification standards doesn’t necessarily mean you can’t qualify for a Colorado jumbo loan with ease. If you have a good real estate company behind you, the whole process becomes much easier. In case you need help with your jumbo mortgage loan don’t look any further than Moreira Team.
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