Home buyers today have an assortment of Jumbo financing options to meet every need. 20-10% and even all the way down to a 5% down payment. Below we will outline the Jumbo loan amount and credit score requirements along with all restrictions. Be sure to also read the Jumbo purchase FAQ’s here.
Buyers that have questions can connect with us 7 days a week by calling the number above, or submitting the Quick Call Form here
Jumbo Mortgage Down Payment & Loan Limits:
- 5% Down Payment Jumbo Loan – eligible buyers can finance up to 95% loan to value up to $1,500,000 for most locations.
- 10% Down Payment Jumbo Loan – eligible buyers can finance up to 90% loan to value when the loan amount is $2,500,000.
- 15% Down Payment Jumbo Loan – eligible buyers can finance up to 85% loan to value when the loan amount is below $3,000,000
- 20% Down Payment Jumbo Loan – eligible buyers can finance up to 80% loan to value when the loan amount is over $3,000,000. Please contact us to learn more about Super Jumbo loans over $4m.
Please note the limits listed above are based on the final loan amount, not the home purchase price.
Jumbo Mortgage Credit Requirements:
- 5% Down Jumbo – Requires a min 680 credit score for all applicants
- 10% Down Jumbo – Requires a min 660 credit score
- 15% & 20% Down Jumbo – Case by case depending on the loan amount.
Please note: *The loan limits are based on the final loan amount, not the home sales price.
Jumbo Mortgage Terms & Loan Structure:
- No Monthly Private Mortgage Insurance (PMI) with all options.
- Borrowers can choose from a variety of different loan terms like 30, 20, and 15-year fix rates & adjustable-rate terms ARM in 5/1, 7/1 or 10/1
- Single stand-alone 95% and 90% financing options are also available depending on the property state, loan amount, and borrower’s credit profile. Many factors will be reviewed during the initial loan consultation to determine which loan structure is best for you.
- Depending on the state – homebuyers will have the option to do a piggyback loan that consists of a first mortgage (up to the conforming loan limit) plus a second “piggyback” loan for the difference. The 80-10 and 80-15 combo loans are a great way for homebuyers to avoid PMI and ensure they take advantage of the lower conventional loan interest rates.
Example of a 95% piggyback combo loan structure: Susan has decided to purchase a home for $900,000 in Phoenix Arizona. She is interested in the 5% down loan option. In this scenario, Susan’s first mortgage amount would be $726,200 – the conforming loan limit for her county. Her second mortgage loan amount would be $128,800. The remaining difference of $45,000 (5%) would be her down payment.
Example of a 90% piggyback combo loan structure: Jim has decided to purchase a home for $1,000,000 in Charlotte, NC. He is interested in the 10% down loan option. In this scenario, Jim’s first mortgage amount would be $726,200 – the conforming loan limit for his county. His second mortgage loan amount would be $173,800. The remaining difference of $100,000 (10%) would be his down payment.
Please note that the standard conforming loan limits have recently increased to $726,200. Certain high-cost locations are even greater at $1,089,300 – please see a list of the latest 2023 Conforming Loan Limits for each county in the U.S.
Primary Jumbo Loan Restrictions:
- All of the program requirements listed above are reserved only for owner-occupied or second-home purchase transactions.
- Investment or rental homes will require a minimum of 25% down. Investors can also learn more about DSCR Purchase Loans.
- Most Jumbo programs will require full underwriting documentation in reference to the borrower’s income and assets. Please note, “stated” income or reduced income doc programs are not available. Self-employed borrowers are required to provide a min (2) years of tax returns. *Bank statement income qualifying programs are available for self-employed buyers with a 10%+ down payment. This option allows business owners to qualify based on their actual business bank deposits rather than the net income average of tax returns.
- Home buyers should be prepared to show the required mortgage payment reserves. This is the amount of liquid and non-liquid assets after the down payment and closing costs. The number (months) of reserves will depend on many factors like loan amount, down payment and credit score. Non-liquid retirement accounts like IRA or 401K accounts DO satisfy this requirement.
- Only single-family homes, condos, and townhomes are eligible. This includes newly constructed properties that are being sold to you directly by a new home builder (ex: new community spec home) Building a new home on your own lot is also permitted under the special Jumbo construction-permanent mortgage. However, please note this program requires a minimum of 10% down payment. Lot loans, land loans, commercial loans, mobile homes, and manufactured homes are not approved.
- 1-4 unit properties are eligible depending on the loan amount.
- All applicants must be U.S. citizens.
- No short sales, foreclosure, or bankruptcy in the previous 5 years – regardless of current credit score.
Special VA Jumbo Loan Highlights:
- Loan amount up to $4,000,000 for eligible active duty or military veterans
- 100% financing limited to $2m loan amounts
- No mortgage insurance
- Fix rate and ARM loan options
- No early payoff penalty
- 640 credit score required
- Same low VA interest rates even for high-balance loans
- Only for primary owner-occupied residence
Specialists are standing by to help with questions 7 days a week until 8 pm. For the fastest response, please submit the Quick Call Form on this page. You can also call us at Ph: 800-840-6449. Our goal is to respond to all requests within 10 minutes (if requested) during normal hours.
