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Stampfli Mortgage | NMLS # 1598803303 S. Main Street | Verona, WI 53593
Wisconsin jumbo mortgages allow you to borrow more than the Fannie Mae/Freddie Mac guideline limit of $484,350 for Wisconsin. This is the most common type of loan when the mortgage amount exceeds conforming limits. To learn more, call (608) 572-7222 or simply fill out a no-obligation online application today!
Obtaining a Jumbo Mortgage has Gotten Easier
There was definitely a time when getting a jumbo loan was a lot more difficult, but times have changed. Lenders are starting to loosen the reins on these riskier loan programs. Some lenders allow credit scores in the high 600 range rather than the mid 700 range and the down payment options have improved as well.
Understanding the Risk of Jumbo Mortgages
The Wisconsin jumbo mortgage may come with a slightly higher price tag (just like the home you plan to purchase). Lenders continue to view this loan product as risky, and risky business often comes with a price. There are several reasons jumbo loans are viewed as risky. For starters the loan is bigger, and the number of investors for this type of home loan is smaller. Also, the larger homes can be harder to sell due to a smaller percentage of people willing and able to buy them leading to more mortgages in default. Large, or luxury, homes are also known for having a greater fluctuation in home value making it easier for the home value to fall below the mortgage amount.
This additional risk may lead to slightly higher interest rates, higher down payments or higher loan to value requirements.
Other Options for Purchasing Higher Priced Homes
You may be able to divide the cost of your home into a first and second mortgage. However, this is only a good option if the combined total of your 1st and 2nd interest rates don’t exceed the Wisconsin jumbo mortgage interest rate. You always have the option of increasing your down payment to cover the difference between the cost of the home and the current Wisconsin conventional loan limit of $484,350. There are also some loan products that are considered high balance mortgages rather than standard jumbo loans. These mortgages exceed the guideline by a relatively small amount. Often these interest rates are closer to conventional rates rather than jumbo interest rates.
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