Jumbo Loan Options After Financial Hardship

Jumbo Loan Options After Financial Hardship

Jumbo loan options are basically a lot more feasible and flexible when taken in comparison with Federal housing association (FHA) loans or conventional types of loans. They are the best especially if the borrower had some sort of financial troubles in the past five to seven years. Borrowers trying to purchase a property in areas where the property values are higher, especially after a foreclosure, bankruptcy, or short sale are often told that there aren’t any options for the next seven years. Some money lenders in the US allow borrows to buy a property after only four years of bankruptcy, foreclosure, or short sale. Unfortunately, in most cases, jumbo VC loans will require at least seven years of wait after a financial hardship. Let us know more about jumbo loan options and see how it affects borrowers.

Jumbo Mortgage: The words Jumbo mortgage gets thrown off especially in financial circles. However, there are only a handful of people who are acquainted with a jumbo loan and its overall importance. When a person wants to buy a new property, they might be needing some sort of mortgages in order to finance their purchases. The American federal government has set up a limit on the amount a person can borrow, so now what happens if you are thinking to take a loan larger than that of the accepted limits?

The overall loan limit is set every year by the government and is completely based on the area of residence of the buyer. In the United States, the conventional home loans are limited up to $510,400. When a borrower wants to exceed this amount, they can enter under the category of jumbo mortgage loans. Jumbo mortgage loans are also termed as non-conforming VA loans and it is available as an adjustable-rate loan or a fixed-rate loan.

Why Should A Borrower Make Use Of Jumbo Loans?

Jumbo loans are very much similar to that of regular conventional or VA loans. To be more specific these loans are better equipped to support the purchase of more expensive properties. In most cases, jumbo loans aren’t only used to buy primary properties but this loan is a very popular choice when it comes to vacation houses or investment properties. When tackling the cons, jumbo mortgages have higher down payments, higher closing costs and there are only a handful of lenders helping with such large loan amounts. Another con of jumbo loans is the inflated rate of interest. Although the interest rates of jumbo loans are considerably low by historic standards, they are still higher when compared to a traditional type of home loan. Jumbo loans are especially recommended to aspiring investors.

Applying For A Jumbo Loan After Two Years Of Bankruptcy

Federal housing administration loans or VA loans allow the borrower to buy again only after two years of being discharged from Chapter 7 and one year from being discharged of Chapter 13. The borrower can use the first mortgage loan up to the available loan limit from their county and can use the second loan option especially when they qualify for it. In case the borrower has served the armed forces of the United States, then they can be eligible for VA home loan benefits. VA loans allow the borrower to buy a property in as less as two years of being discharged from short sale, foreclosure, or bankruptcy. However, the sad part is, each of these events commences another waiting period of two years in case the borrower had multiple hardships in their respective financial career.

Applying For A Jumbo Loan After Four Years Of Bankruptcy

Federal housing administration loans or VA loans only allow a borrower to borrow after only three years of short sale, foreclosure, or bankruptcy. This option is at times much better than that of jumbo mortgage loans which are only available after four years. However using conventional financing, a borrower can buy again after four years of being discharged from chapter 7 of bankruptcy, regardless of short sale, bankruptcy, or foreclosure. Generally, a foreclosure on a mortgage loan isn’t discharged through bankruptcy and might result in seven years of waiting period. Therefore, FHA or VA loans are probably the best option that can be used for refinancing within this time period.

Common Financing Challenges

There are a lot of lenders available who lack the experience of helping out borrowers who have suffered from past financial hardships. It is therefore suggested to not get surprised as it takes a few tries to find the right lender who can help.

It is always advisable to put the majority of home investment in conventional types of VA loans. By doing so the borrower can take advantage of low-interest rates and the best terms that are available on the larger first loan. Opting for a blend between two mortgage VA loans can fetch you lower interest when compared to single loan options.

In case you are thinking of buying a new property in Gilbert, Scottsdale, Phoenix, or Tempe try considering UrbanHouse Realty. The agents at UHR have years of experience and immense knowledge in all sorts of property acquisitions. No matter if you are a seasoned investor or a first-time buyer, the well-versed team at UHR has all the expertise that can cater to your purchase.


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