Getting a Mortgage for Buying Luxury Homes in Los Angeles
If you are currently looking at Los Angeles luxury properties to make a purchase, you also need to consider your options when it comes to mortgages. While jumbo mortgages are available, the process and requirements to get approved for them are different from those of usual mortgages, posing difficulties to buyers while getting these loans.
How Much Do You Need to Buy Los Angeles Luxury Properties?
When buying Los Angeles luxury mansions, you need much more than the usual amount of mortgage. However, getting a big mortgage is not a trouble if you fulfill the requirements. While typical mortgages start from $50,000, there is actually no upper limit to the amount of mortgage you can get. You can get mortgages as high as $800,000 or even more if you fulfill the approval criteria of the lender.
Requirement for Jumbo Mortgages
As expected, the approval criteria for jumbo mortgages are extremely strict and it is not easy to get qualified for such loans for people who want to buy luxury homes in Los Angeles. Here are some basic requirements that you need to fulfill if you want to get approved for a jumbo mortgage:
Down Payment for Buying Luxury Homes in Los Angeles
When buying Los Angeles luxury properties, the maximum amount lent to you is 20% of the house value. The remaining 20% is the down payment that you have to arrange for yourself. Typically, you need to put down at least 20% to 30% of the total house value for buying such properties. In some cases, the developers can provide additional financing of up to 10%, but these are rare instances. However, the down payment requirements are being lowered for jumbo loans by a number of lenders to attract buyers.
Credit Requirements for Jumbo Loans
For jumbo mortgages aimed at Los Angeles luxury mansions, the credit requirements are stricter than those for traditional mortgages. You need to have a credit score of around 700 or even more to get approved for such loans. Moreover, your debt to income ratio should ideally stay at the maximum level of 45%. If your score is low or your debt to income ratio is more than 50%, your chances of getting a jumbo mortgage are very low.
For jumbo mortgages, you are required to submit the same kind of paperwork that you do in case of general mortgages. This includes information on your income, assets and liabilities. The account of your liabilities and assets should be accurate if you want to get approved for the mortgage. The lender will pay close while authenticating your records.
If you fulfill the requirements, getting a jumbo mortgage would be as simple as getting a typical mortgage. So now that you know what is needed, you can go ahead and get your jumbo mortgage to buy luxury homes in Los Angeles.