Jumbo Loans in Indiana

Sometimes, you just cannot purchase the home of your dreams without borrowing more money than the Fannie Mae and Freddie Mac conforming loan limits make possible. That is when you need to apply for a jumbo loan.

What is a Jumbo Loan?

A jumbo loan is also called a “non-conforming” loan, which describes what it is. It is a conventional home loan that does not conform to the Fannie Mae and Freddie Mac conforming loan limits.

When we say that it is a type of “conventional” loan, that simply means a government agency does not provide backing.

Do You Need a Jumbo Mortgage in
Indiana?

Whether you need a jumbo loan or you can purchase a home using a conventional conforming loan depends on how much you need to borrow and in what county you are shopping for a home.

As an example, take Lake County, where Merrillville is located. The conventional loan limits for Lake County are:

These same conforming loan limits apply to all counties throughout Indiana. They are also the same across most of the rest of the country. The only exceptions are high cost counties that have higher conforming loan limits.

So, if you want to borrow up to $548,250 to buy a 1-unit home in Indiana, you can use a conforming loan.

But if you want to borrow more than $548,250 to buy a 1-unit home, you would need a jumbo mortgage.

How to Qualify for a Jumbo Loan

Homebuyers who have never applied for a jumbo mortgage sometimes expect that the process will be much more involved, but it is much the same as applying for a conforming loan.

In both cases, we assess:

• Your credit score.
• Your debt-to-income (DTI) ratio.
• Your down payment ability.
• Your income.

These do need to be more competitive when applying for a jumbo loan, and you must be able to afford at least a 15% down payment. You also should have cash reserves to cover at least six months. You might need a pair of appraisals rather than only one.

Can you apply for a jumbo loan if you are buying your first home? Yes! There is no requirement to be a returning homebuyer.

Apply Now for An Indiana Jumbo
Loan

You are just steps away from buying a beautiful home in Merrillville or anywhere in Indiana. We are ready to walk you through the application process for a jumbo mortgage. Please give us a call today at (219) 756-5626 to schedule your consultation.