Utah Jumbo Loans

What is a Utah JUMBO LOAN?

Utah Jumbo Loan

Utah Jumbo loans are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA) and are not eligible to be purchased, securitized, or guaranteed by Fannie Mae or Freddie Mac.

When talking about jumbo loans, we’re talking about BIG loan amounts. Sometimes you need these to afford a bigger home, while higher prices in certain areas of Utah can also push you into the jumbo bracket. If you’re looking at jumbo loans, here’s what you need to know.

What is a Jumbo Loan?

A jumbo loan is a loan that’s over the conforming loan limit set by government-sponsored mortgage groups, which are Freddie Mac and Fannie Mae. The conforming loan limits can differ based on where you’re at in Utah as well as the type of loan you’re getting.

What’s a Conforming Loan Limit?

Freddie Mac and Fannie Mae set the cap of how high any individual mortgage can be. In 2019, the conforming loan limit for these investors to buy mortgages has been set at $484,350 in most Utah counties; a few counties that are considered high-cost areas the limit is $726,525.

The above limits apply to one-unit properties. You can buy up to four units in a multi-family property and the limits get progressively higher as more units are added.

If your mortgage amount is higher than conforming loan limits, then it becomes a jumbo loan. VA loans also follow the loan limits set by Fannie Mae and Freddie Mac. If you live in select high-cost counties, your loan limit on a one-unit property is anywhere between $484,350 and $726,525.

Requirements for Jumbo Loans

Jumbo loans do have more stringent requirements that mortgage brokers and lenders have given the increased risk associated with getting a larger loan.

One of these is a larger down payment. This is typically required because more of a risk is taken by the lender with jumbo loans. If a house with a jumbo loan goes under and there haven’t been significant payments on it, the mortgage lender is on the hook for that loan.

At Advanced Funding Home Mortgage Loans, we offer jumbo loans with as little as 5% down payment. The higher your loan goes the higher the down payment requirement will be.

The one exception to this rule is that there is no down payment required on VA jumbo loans. However, you can only use your VA loan to get a primary property. All the standard VA loan requirements apply. You have to be an eligible active-duty service member, veteran or surviving spouse.

They’ll also want to know that you’re well-qualified to handle the payments for a certain time period after a job loss or other significant life events affecting your income. Depending on your loan amount, whether you’re a first-time homebuyer and the size of your down payment or equity amount, you’ll need anywhere between six and 18 months of mortgage payments, including principal, interest, property taxes, homeowners insurance and homeowners association dues (if applicable) in reserves for a standard jumbo loan. VA loans require anywhere between two and six months of reserves. Other lenders may have different requirements.

In a nutshell, everything is jumbo about the jumbo loan: the size of the loan, the down payment and the monthly payments. This may sound alarming, but it’s normal in comparison to the size of an average loan. If you’re truly looking for that dream house and it falls into that range, don’t let the adjective “jumbo” deter you. Several loan terms are available with a jumbo loan, including fixed or adjustable rate options.

Advanced Funding Home Mortgage Loans

Your Local Mortgage Company

As a mortgage broker in Utah, we work with several mortgage lenders, enabling us to offer you a variety of Utah mortgages and refinance home loans at the best mortgage rates and lowest fees available. Working with several lenders allows us to offer more home loan options to help you achieve your goals. Whether you're buying a home or refinancing, Advanced Funding is here to help. Our mortgage loan officers are available to help you during regular business hours or a time that is more suitable to your needs. Call today for more information, 801-272-0600.

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As one of the most trusted and respected mortgage companies in Utah, Advanced Funding Home Mortgage Loans offers a variety of purchase mortgage and refinance products. Our licensed mortgage brokers are both knowledgeable and experienced to ensure you a pleasant home loan experience at the best interest rates available. We combine the use of technology, impeccable service, a dynamic management team, along with a well-trained, and experienced staff to produce results, such as great mortgage rates, low fees, and most importantly, a fast and pleasant loan experience.

Advanced Funding Home Mortgage Loans
6589 South 1300 East, Suite 200
Salt Lake City, UT 84121

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