Arizona Jumbo Mortgage Loans: Ballpark Estimates

Recently more than one person has called me asking about whether or not they could get a “jumbo mortgage loan” – meaning a loan that was over the Arizona conforming loan limit of $417,000. Since the answer is “yes, assuming that you have good credit, assets and income” I thought that other people may be interested to know what kinds of ballpark numbers we see for Arizona jumbo mortgage loan products from the various lenders.

arizona jumbo loanArizona Jumbo Mortgage Loan LTV Requirements:

Three years ago, it wasn’t uncommon for a lender to loan up to 100% to millions of dollars. Now, there are significant loan to value restrictions and generally speaking the higher the loan amount, the lower the loan to value ratio.

  • For loans up to $900,000 expect the loan to value ratio to be around 75%.
  • For loans up to $1,200,000 expect the loan to value ratio to be around 60%.
  • For loans up to $1,500,000 expect the loan to value ratio to be around 50%.

Arizona Jumbo Mortgage Loans: Credit Score Requirements

If you are considering a Jumbo mortgage, chances are that you have good credit and know it. If your credit score is over 750, you should be fine. Anything less than 750, double -check. Anything less than 680, your jumbo loan choices are slim.

Arizona Jumbo Mortgage Loans: Income Requirements

Your ability to make your monthly payment for a Jumbo mortgage is something that the underwriters will pay special attention to. Generally speaking, lenders like to see no more than 35% of your total income spent on your monthly mortgage payment and no more than 45% of your total income being spent in monthly bills. For all of the mortgage folks who like to speak in terms of “DTI” (debt to income) that would translate to to a 35% front end DTI and a 45% back end DTI.

Arizona Jumbo Mortgage Rates

So what kind of rates are there currently for Jumbo loans? Generally speaking, the mortgage rates for Jumbo loans in Arizona are in the 5%’s for any adjustable rate (3/1, 5/1 ,7/1) and in the 6%’s for any fixed rate Jumbo loan.

So while the Arizona Jumbo loan market is not completely dead, there are far fewer lenders who are lending money in this market than just a few years ago. If you are in the market for a Jumbo loan, hopefully you will have a pretty good idea of what the “range” is regarding rates, income requirements, credit score requirements and loan to value ratios.

And of course…

These numbers can all change quickly.