Jumbo Loans, Mortgages, Home Loans in Green Bay, Wisconsin

Fannie Mae and Freddie Mac were both created by the United States government. Both entities are instrumental in the mortgage market and the majority of home loans and mortgages are purchased by Fannie Mae or Freddie Mac to hold in their portfolio or package and sell as mortgage backed securities. Fannie Mae and Freddie Mac also set specific guidelines and mortgage criteria for the for the home loans they will purchase. This means that borrower’s (the home buyer’s) need to meet all of the criteria in order for their lender to be able to sell their loan to Fannie Mae or Freddie Mac. Selling the loan is common practice and allows the bank or lender to have a continuous supply of funds to lend to new borrowers.
Jumbo Loans Exceed Loan Limit
The biggest difference with jumbo loans or jumbo mortgages is that they are not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Jumbo loans actually exceed the loan limit hence the name jumbo loan. Jumbo loans and mortgages were designed to specifically finance high priced luxury properties.
Jumbo Loan / Jumbo Mortgage Guidelines and Criteria
Jumbo loans also have their own criteria, underwriting requirements, and tax implications. Due to the riskier nature of the jumbo loan they have stricter and more rigorous requirements that home buyers will need to meet. A credit score of 700 or above is a necessity as well as an appropriate debt to income ratio, and cash reserves to cover six months worth of mortgage payments. Additional requirements include accessible cash, one month of pay stubs, and two years of W2 tax forms. The requirements for self employed individuals include two years of tax returns in addition to two months’ worth of bank statements.
Get Pre-Approved for a Jumbo Loan Today!

Are you interested in financing a property that exceeds the loan limit of a conventional mortgage? Talk to a home loan specialist at Executive Mortgage today. Our loan officers are experts in jumbo loan advantages, disadvantages, restrictions, and criteria. They can guide you throughout the process of jumbo loan pre-approval, application, and closing.