Unlock Bigger Possibilities With Our Jumbo Mortgages

Twin Cedars Bank, one of Iowa’s most trusted lenders, understands that achieving your dream home isn't a one-size-fits-all proposition. Sometimes, your vision extends beyond the limitations of conventional mortgages. That's where jumbo loans come in, offering the key to unlock the door to extraordinary properties.

What is a Jumbo Loan?

A jumbo loan is a type of mortgage specifically designed for financing homes exceeding the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, jumbo loans are not guaranteed by Fannie Mae or Freddie Mac. This means Twin Cedars Bank looks more closely at your financial situation to tailor a loan that meets your unique needs. An Iowa lake house financed with a Jumbo Loan from the best Iowa lender, Twin Cedars Bank.

How Does a Jumbo Loan Work?

Jumbo loans function similarly to any other mortgage but with the flexibility to accommodate larger loan amounts. You can choose between fixed and adjustable interest rates, with repayment terms typically stretching over 30 years or shorter durations.

How to Qualify for a Jumbo Loan

While conforming loans are readily available due to government backing, qualifying for a jumbo loan requires a more stringent financial profile. Here's what you need to know:

Credit Score: A strong credit history is paramount. Aim for a score of at least 700, with even higher scores (720-740) potentially required for larger loans. Twin Cedars Bank takes your creditworthiness seriously, but we also consider your overall financial picture.
Debt-to-Income Ratio (DTI): This ratio measures your monthly debt obligations compared to your gross income. A healthy DTI is typically below 36%, although some lenders, including Twin Cedars Bank, may consider ratios up to 43% in specific circumstances.
Cash Reserves: Demonstrate financial stability by having sufficient cash reserves. Ideally, aim to cover at least 6-12 months of mortgage payments and closing costs.
Down Payment: Jumbo loans typically require a higher down payment compared to conventional loans. Expect to put down at least 20% for a primary residence and potentially more for investment properties.

Understanding these factors allows you to work towards a strong financial position that sets you up for jumbo loan success.

Jumbo Loan Limits

The loan amount that qualifies as "jumbo" varies by location. For most of the country, a single-family home loan exceeding $766,550 is considered jumbo territory. However, in high-cost areas like parts of California, New York, and New Jersey, the threshold jumps to $1,149,825. The FHFA updates these limits annually, and Twin Cedars Bank stays current on these changes to ensure you have access to the most accurate information for your specific area.

Jumbo Loans vs. Conforming Loans

Conforming loans, backed by government entities, are widely available and offer competitive interest rates. However, they come with limitations on loan amounts. Jumbo loans, on the other hand, provide greater buying power, allowing you to pursue the luxurious home you've always dreamed of. Here's a quick comparison:

Feature	Conforming Loan	Jumbo Loan
Loan Limits	Up to $766,550 (most areas)	Exceeds conforming limits
Interest Rates	Generally lower	Potentially higher
Credit Score Requirement	Typically 620 or higher	Typically 700 or higher
Down Payment Requirement	Typically 3-20%	Typically 20% or more

Find Out if a Jumbo Loan is Right for You

Twin Cedars Bank is a local Iowa bank passionate about helping Iowans achieve their homeownership goals. Our experienced Iowa mortgage specialists understand the intricacies of jumbo loans and are dedicated to guiding you through the process. We offer competitive rates, personalized service, and a commitment to making your dream home a reality.

We’re ready with solutions to turn your dreams into tangible, achievable outcomes. Whether purchasing a home, refinancing your home, renovating, or building a new home, we have home loan options with jumbo loan limits for your unique financing needs.