Jumbo Loan Refinances are similar to Conventional Refinance options. Most borrowers will do a Jumbo Loan refinance upon improvement of their credit and/or through a cash-in refinance option. However, these improvements are completely necessary to see any big differences in this Refinance option. Jumbo Loan Refinance options have very high requirements for documentation and credit, due to the lender risk. A Jumbo Loan Refinance also has additional requirements that other refinance options do not have. In order for a borrower to be considered for a Jumbo Loan refinance, they must have at least a 700 credit score, no bankruptcies within the past seven years, four or fewer other active mortgages, and a maximum debt-to-income ratio of 41 percent. Additionally, on top of those requirements, a borrower must also show that they have the liquid assets for this Jumbo Loan refinance. Other asset and income documentation that is needed is also needed for other refinance options, with a closer resemblance to the Conventional Refinance option.
Similarly to Conventional and FHA loans, Jumbo Loan Refinances allow for cash out options for purposes not related to the property being refinanced. For example, a borrower looking to do a cash out refinance can use that money to pay off a car. Jumbo Loan Refinances with borrowers who improve their credit scores can make a very big difference with interest rate improvements due to the size of the amount being loaned itself.
Jumbo Refinance Program Requirements
Min. 20% or loan-to-value of 80%
Cash out available
Fixed Rate, Variable Rate, or Adjustable Rate
Can convert from any program except jumboCan convert from any program except jumbo