Your Lake of the Ozarks Mortgage Lender: October 2023

What is a JUMBO Home Loan?

A jumbo home loan is a mortgage loan that is in excess of the conforming loan limit set by the Federal Housing Finance Agency (FIFA), which was $726,200 for a one-unit residence in 2023. These loans are usually obtained to finance a luxury home or a property that is located in a high-cost area where the conforming loan limit is typically below the median home price for that area.

Qualifying for a jumbo mortgage follows the same process as a conforming loan where the lender will still review your credit history, credit score, income, assets, reserves and debt ratio. Some of the requirements for jumbo loans are more stringent than conforming loans, such as requiring more reserves after closing (12 months versus 2-6 required for conforming loans).

Jumbo loans are available with a fixed rate term or an adjustable interest rate, depending on the factors on the loan (i.e., credit score, loan-to-value, etc. These loans are also considered riskier for lenders because they are not guaranteed by Fannie Mae and Freddie Mac, which means the lender is not protected from losses if a borrower defaults on their mortgage.

Team Lasson is here for all of your home buying needs! If you're thinking about making the leap into home ownership in the near future, please contact us today to get started. We can help you determine what loan program works best for your financial goals. The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks. To get started, visit www.yourlakeloan.com or give us a call at (573) 746-7211!

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

First State Bank Mortgage – Michael Lasson

2751 Bagnell Dam Blvd Suite B

Lake Ozark, MO 65049

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.yourlakeloan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St. Charles’ positions, strategies, or opinions.

Is an FHA Home Loan Right for you?

FHA loans are an option for homebuyers that haven’t saved up for a large down payment to purchase their new Primary home. An FHA Loan is a mortgage that is insured by the Federal Housing Administration. The program allows borrowers to finance a new primary home purchase with a low down payment and will typically carry a lower interest rate, cheaper Mortgage Insurance, and will allow for a lower credit score.

FHA lenders will review your credit history to determine if you qualify for the program. Even if you have less than stellar credit, you may still qualify for an FHA Loan.

Bankruptcy: you must be at least two years out from the discharge date of a Chapter 7 bankruptcy and you must have established good credit or not have incurred any new credit obligations since the discharge

Late Payments: you need to have a minimum of 12 months of payments on current obligations that are made on time

Foreclosure: these are considered on a case-by-case scenario and will depend on the circumstances that led to the foreclosure

Collections, Judgments and Federal Debt: Typically, collections and judgments must be paid off prior to or at the time of closing, except for medical collections

No credit history: In some instances, you can provide documentation to build non-traditional credit such as insurance payments, cell phone bills, electric bills, etc. Your lender can assist you with what is needed to complete this

FHA Loans will also allow for Gift Funds to assist with the down payment requirement and closing costs. These funds can come from any of the following sources:

· Borrower’s family member

· Borrower’s employer or labor union

· A close friend with a clearly defined and documented interest in the borrower

· A charitable organization

· A governmental agency or public entity with a program providing homeownership assistance to low- or moderate-income families or first time homebuyers

There are also maximum loan amounts for different parts of the country. These have been calculated by FHA and are known as FHA lending limits. These are calculated and updated annually. Below are the 2023 limits.

LOW COST AREA
2023 FHA Limits
Single	Duplex	Tri-plex	Four-plex
$420,680	$538,650	$651,050	$809,150

HIGH COST AREA
2023 FHA Limits
Single	Duplex	Tri-plex	Four-plex
$970,800	$1,243,050	$1,502,475	$1,867,275

Team Lasson is here for all of your home buying needs! If you're thinking about making the leap into home ownership in the near future, please contact us today to get started. We can help you determine what loan programs works best for your financial goals. The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks. To get started, visit www.yourlakeloan.com or give us a call at (573) 746-7211!

LIKE my Facebook Page or Connect on LinkedIn