Need a loan outside the conforming loan limit? You still have options even if you have been rejected for a jumbo Kansas City home loan. When the housing market crashed in 2007, many flexible options went to the wayside. However, the market’s recovery over the past two years has revived some of these older programs. If you have just suffered a jumbo loan rejection, consider:
Rejection is common in the jumbo loan market because they are a high-risk endeavor. Even people with good credit, assets, and income have difficulty qualifying. Non-conforming loans usually cannot be sold in the secondary mortgage market because they go over the Freddie Mac and Fannie Mae Kansas City home loan limits. This condition means that your lender takes full responsibility for your loan if you foreclose. Therefore, they want to be as certain as possible that you will make your mortgage payments on time.
However, some lenders are less active in the secondary mortgage market and therefore worry less about their ability to sell your mortgage to another lender. Actively seek out these lenders if you believe that your credit history and other qualifiers imply that you are a good candidate for a jumbo Kansas City home loan.
If you consistently get rejected for jumbo loans—even by the lenders described above—you can still get a larger home by combining two mortgages. Secondary mortgages, or “piggyback loans,” allow you to secure the loan with your house. While people use secondary mortgages for a wide variety of expenditures, it is possible to combine them with your primary home.
However, these mortgages are more risky than your average Kansas City home loan because if you don’t repay it you can lose your house. Be sure to weigh the pros and cons before signing on for that piggyback.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
