Louisville has continued to expand in recent years and the real market remains strong. As home prices increase, so does the need for higher Jumbo loans. The city offers a variety of housing options, from historic Victorian homes in the Old Louisville neighborhood to modern apartments in the bustling downtown area. With a low cost of living and a thriving economy, it’s easy to see why Louisville is becoming an increasingly popular place to call home.
In addition to its diverse housing options, Louisville also boasts a vibrant cultural scene. The city is known for its bourbon distilleries and hosts the annual Kentucky Derby, one of the most famous horse races in the world. Music lovers will also find plenty to enjoy, with frequent concerts and festivals featuring both local talent and big-name acts.
The median home prices in Louisville are currently around $245,000. This means a regular FHA or conventional loan will meet the needs of the majority of home buyers. FHA loans are currently capped out at $498,257 and Conforming loans are limited to $766,550 for a 1-unit property for all counties in Kentucky *Please find standard muti-unit in the chart below.
Borrowers that require even higher loan amounts will often utilize a Jumbo financing. Jumbo loans are available in Louisville for amounts over $766,550 and up to $3,000,000+ In some neighborhoods like Anchorage, Glenview, Mockingbird Valley, Lake Forrest, etc the median home price can easily exceed $1m.
These loans offer flexible terms as borrowers can choose from fixed-rate or adjustable-rate options, as well as different loan lengths. This allows borrowers to tailor their mortgage to fit their individual financial needs.
It is important for borrowers to carefully consider their financial situation when considering a Jumbo mortgage. While these loans offer flexibility and potential benefits, they also come with higher risk due to the larger loan amounts. Borrowers should also be prepared to provide extensive financial documentation and have strong credit scores in order to qualify.
Let’s look at the Louisville Jumbo mortgage approval in 4 simple steps.
Step #1 – Determine loan amount and down payment:
Step #1 – Determine loan amount and down payment: Jumbo loans come in all shapes and sizes, up to 95% financing. The max loan amounts are greatly determined by the buyer’s down payment. In short, higher down payments will allow for greater loan sizes. In most cases, the 5% down payment options are limited to loan amount up to $1.5m. 10% down payment options are often eligible up to $2.5m loan amounts. 15%, up to $3m. And finally, buyers may put 20% or more down and qualify for loans exceeding $3.5m+.
Step #2 – Your credit score:
Step #2 – Your credit score: Credit requirements for Jumbo mortgages are typically higher than traditional mortgages. Borrowers should have a minimum credit score of 680, when financing the max loan to value. Lower credit scores down to 640 can be approved for borrowers with a sizable down payment. Lenders will also consider other factors such as debt-to-income ratio, assets, and employment history when evaluating creditworthiness. It is important to have a strong credit score and financial standing when applying for a jumbo mortgage, as this can greatly impact your terms and interest rate.
Step #3 – Income verification:
Step #3 – Income verification: In order to qualify for a jumbo mortgage, borrowers must provide documentation of their income. This includes W-2s, tax returns, and recent pay stubs. Lenders will also consider any additional sources of income such as bonuses, commissions, and investment income.
Having a stable and consistent source of income is crucial in the approval process for a jumbo mortgage. Qualified self-employed business owners do have options that allow them to qualify strictly based on actual business bank deposits. This program does require a minimum 10% down payment, please connect with us to learn more.
Step #4 – Loan Application Process:
The loan application process for a jumbo mortgage is similar to that of a conventional loan, but may require more documentation and scrutiny due to the larger loan amount. Borrowers will need to provide personal information, such as their social security number, as well as details about their employment and income.
Lenders will also run credit checks and order appraisal(s) of the property once the buyer is under contract to purchase a home. It’s important to have all necessary documents ready and be prepared for a thorough review of your financial situation during this process.
The application process can be completed in minutes over the phone or securely online. To learn more, please contact us at the number above seven days a week, or just submit the Quick Contact Form on this page.