We think many homebuyers will be happy to know about the recent changes to the Jumbo loan limit of 2022. These loans have become the norm now as consumers find themselves in tricky situations within homes that were once considered affordable.
The FHFA reviews the terms on different loans every year and will increase the loan limit if they have to keep up with a rapidly increasing price. This year, we have seen the most significant loan limit increase since the 70s, which means a massive change in interest rates and how much you can afford to pay.
Getting a Jumbo loan is not as easy as getting most other loans but is more rewarding when you want low down payments and interest rates. The best Seattle mortgage brokers prefer applicants with a high credit score and a low DTI of about 40% or less. These loans are harder to get now because of the increased loan limits, which means they are forced to make stringent laws to cover the increased risk involved. You can get in if you manage to earn the lender’s trust and show that you have a steady income and good financial sense to repay it without any problems.
Requirements To Get A Jumbo Loan
- A credit score of about 700 or higher, considering those who have a lower one of about 640 or 620
- A DTI that is a maximum of 45%
- Consistent financial strength for your bank statements, savings, and tax calculations for about two years before the application
- A down payment of 20% or more
- Closing costs of 3-6% in cash, which usually translates to anything between 10,000-25,000 for single-family units
The Jumbo Loan Limit Of 2022
The loan limit increased from about $548,000 to $822,000 in 2021 alone, and the price is reaching record levels in some high-cost areas in 2022. What does this mean for the mortgage applicant?
An increase in loan limits means it is easier for one to get mortgage loans, and borrowers will have an easier time staying within the limits of the loans and getting a home that has increased its value rapidly over the past year. On the other hand, lenders will tighten their requirements so that applicants have to prove they are still capable of paying back the loan with consistent amounts.
How To Get Past The 2022 Jumbo Loan Limits By The Best Home Loan Lender In Seattle
Are you planning to get a home in 2022? You can be confident that lenders are looking for applicants who have proven time and time again that they have the financial ability to pay back the loan. We are mortgage brokers who have witnessed the shift on conditions set by lenders as the loan limit rises, and know which factors one would have to improve to get the best possible products. Talk to us today to understand more about our Jumbo loan options, or apply to get started with your Jumbo mortgage approval with top mortgage lenders nearby.