Housing in Oakhurst is quite affordable, even with the town’s close proximity to Yosemite National Park. Nevertheless, you may be in the market for a home which you cannot finance using a conventional home loan.
At times like that, you need a Jumbo loan.
A jumbo mortgage allows financing beyond the Fannie Mae and Freddie Mac limits for conforming loans. This allows you to purchase a more expensive property than would be possible through conventional financing.
To determine whether a jumbo mortgage is necessary for your home purchase, you will need to familiarize yourself with the conforming loan limits in the area.
As conforming loan limits are different from county to county, you will need to look up what the limits are for the county where you are shopping for a home.
In Madera County, where Oakhurst is located, the conforming loan limits are:
These are also the conforming loan limits for Fresno County.
Conventional loan limits are higher in some of the nearby counties with more expensive housing.
In San Francisco County and Santa Clara County, for instance, the conventional loan limits are:
If the amount of money you need to borrow to finance your home purchase exceeds the conforming loan limits for the county where the home is located, then a jumbo loan is appropriate.
When you apply for a conventional mortgage, these factors will be assessed to determine your eligibility:
Two appraisals of the home you plan to buy are required.
Your cash reserves and assets will be considered.
You must be steadily employed in your profession.
Your down payment requirement may be higher than it would be for a corresponding conventional loan, though there are exceptions.
You will need a reasonably high credit score and DTI ratio since a jumbo loan imposes more risk than a conventional loan.
Granite West Funding, LLC is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.