Jumbo Mortgage Sinking Spring, PA

Bellco FCU’s home financing programs in Sinking Spring, PA, offer competitively low rates for home purchase, refinance, or construction, including jumbo mortgages.

Bellco Federal Credit Union is a member-owned, not-for-profit federal credit union that offers unique financial products and services to individuals and small businesses in Berks County, PA.

Membership in Bellco FCU is open to individuals who live, work, worship, or attend school in Berks County, PA. Simply open a Member Savings account with as little as $5, and establish your membership in a few simple steps. Once a member, you’ll be able to take advantage of the wide range of services we offer and our competitively low rates for home purchase, refinance and construction.

What is a Jumbo Mortgage?

When you find a beautiful home with a purchase price that exceeds the loan limits for traditional loans, a jumbo mortgage can be an excellent solution. It can provide competitive rates and terms that may help you avoid taking out a second mortgage.

A jumbo mortgage, or non-conforming mortgage, is any mortgage that exceeds the current conforming loan limit of $453,100 ($679,650 in some “high cost” areas) set by Fannie Mae and Freddie Mac for a single-family home in the contiguous United States. 

These loans make it possible to finance primary residences or investment properties and second homes priced as high as $3.5 million. Most jumbo loans are adjustable rate loans; fixed-rate jumbo mortgages are relatively rare. 

Qualifying for a Jumbo Loan

Because jumbo loans are larger and riskier for lenders, the requirements are stricter.

Credit score: Most lenders will look for high credit scores of at least 700 (out of 850).

Down payment: Requirements vary by lender, but most will require larger down payments to mitigate their risk. Expect to make a down payment of at least 20 percent.

Debt-to-income: Lenders want to be sure your monthly payments are realistic. The lower your overall debt payments (mortgage payment plus credit cards and other debt) are to your income, the better. Your monthly mortgage payment should be no more than 38 percent of your income before taxes.

Cash reserves:  Approval for a jumbo loan is more likely when you have enough cash in the bank. A good rule of thumb is to have adequate cash reserves to cover three to six months of principle mortgage payments, interest, taxes and insurance.

If the terms of the jumbo mortgage are not right for you, Bellco FCU offers other mortgage options with various terms and requirements, including 15- and 30-year fixed rate mortgages, FHA mortgages, VA mortgages, USDA mortgages, and more. We can assist you with a mortgage program that best fits your goals.

Finding the right mortgage, whether conventional or jumbo, will set a solid foundation for successful homeownership. Bellco FCU in Sinking Spring, PA has the tools, information and expertise to help you make the right decisions.