In this article
Massachusetts Jumbo Loan
A jumbo mortgage loan is a loan in which the amount exceeds the borrowing limit set by Fannie Mae and Freddie Mac for conforming loans. The current limit in Massachusetts is $832,750 for a single-family unit. In a few counties the loan limit is much higher at $1,249,125. So if you take a mortgage with an amount that exceeds that set limit you will have taken a jumbo mortgage.
Today’s Massachusetts Jumbo Rates
Purchase Affordability Calculator
Jumbo loans are necessary for many reasons, but the biggest advantage is that a homebuyer can use one to make a higher cost home purchases. It’ is practically’s almost impossible to finance the more expensive homes in certain Massachusetts counties. A good example is Nantucket County where the average list price is around $4,575,000. It is the highest by far, but there are other counties like Dukes, Middlesex and Norfolk that also have very high listing prices.
The high value of a Massachusetts 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 conforming or government loan. For instance, 20% down payment is a common requirement, but some Massachusetts lenders can go as low as 10% or 15% as long as you have sufficient income and assets. Another common requirement is a FICO score of at least 680.
There is a special program for interest only jumbo loans as well. This unique mortgage program is specifically tailored for high-value properties, allowing borrowers to make interest-only payments for the first 10 years before transitioning to principal and interest payments for the remaining 30 years. The result? Lower initial monthly payments make homeownership more accessible for those looking at larger, more expensive properties.
The stringent qualification standards don’t necessarily mean you can’t qualify for a Massachusetts 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.