Myth # 1 : JUMBO Mortgage have higher interest rates
This is not always true. As a matter of fact, Option One Lending is often able to offer interest rates on JUMBO loans that are lower than other conventional loans.
Myth # 2 : Single Family Luxury Homes Only
The property types allowed by jumbo mortgage guidelines are very similar to the guidelines for a conventional home. In fact, a condominium, a duplex, a triplex and a 4-unit home all can qualify for a jumbo mortgage.
Myth # 3 : $1 Million+ Homes
One of the worst myths that consumers believe about a jumbo loan. As of January 1st, 2018, in most areas of the country, a loan amount above $453,100 is considered JUMBO. But, in high cost areas such as Los Angeles county, that limit is much higher and is for loans above $679,650 for a single unit property.
Myth # 4 : Large Down Payment Required
Another myth that’s not true. We offer jumbo loans with as little as 10% down payment. As with any other loan program, higher down payments usually help secure a lower interest rate, but it’s not a requirement.
Myth # 5 : PMI is Required for Every Jumbo Loan
This may be true in some scenarios, but at Option One Lending we offer multiple JUMBO loan programs that require no Mortgage Insurance with as little as 10% down payment.