Is a Jumbo Mortgage in Maui needed ?

howard

4 years ago

Jumbo Mortgage in Maui & Jumbo Loans in Maui are on a Comeback!
Looking to buy a Luxury Home on Maui?
Contact Howard Dinits R(B) Dinits Realty in Hawaii

Howard Dinits Maui Luxury Real Estate Specialist
877-434-6487 or 808-874-0600 howard@howarddinits.com

I have had several buyer clients ask me. When is a Jumbo Loan needed?

Answer: If the loan amount exceeds $765,600.

What will one million dollars buy you in Maui?

As mortgage rates begin to go up the difference between conforming and Jumbo rates is shrinking and that is excellent news for buyers of higher priced homes in the Kihei, Wailea and Makena areas.

A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $510,400 for a single-family home in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $765,600)

Jumbo mortgages are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms, including fixed-rate and adjustable-rate loans. A jumbo loan will typically have a higher interest rate, stricter underwriting rules and require a larger down payment than a standard mortgage

While there is no jumbo loan limit set by regulation, the reality is that you’ll have to meet certain qualifications to get a non-conforming loan.

When lenders make conforming mortgages, they know that they can sell the loans to Fannie and Freddie and offload some of the risks. However, with a non-conforming loan, that option isn’t available, so jumbo mortgage lenders often require a little more from borrowers. This can include such qualifications as:

A higher credit score than might be required for a conforming loan
20 percent minimum down payment
Better debt-to-income ratio

Conforming loans are mostly financed by Fannie Mae and Freddie Mac. Jumbo loans are usually higher than $765,600 and are funded by private investors or banks.

Home of the Day is Million Dollar Homes in Maui

With limited inventory available in Maui especially Kahana, Kapalua, Kihei and Wailea the prices are on the rise. As a result luxury buyers are back, the jumbo market is heating up. Although jumbo loans have tighter guidelines than conforming such as increased reserve requirements, they are becoming easier to obtain and will likely get cheaper as more and more investors are willing to purchase as mortgage back securities.

This is excellent news for seller’s of the higher priced Hawaii real estate which has been limited because of lack of available credit for Maui Buyers.

Looking for a jumbo loan to buy a House in Maui?

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