Home buyers today have an assortment of Jumbo financing options to meet every need. 20%, 15%, 10% all the way to 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.
Jumbo Mortgage Down Payment / Loan Limits:
- 5% Down Payment Jumbo Loan – eligible buyers can finance up to 95% loan to value when the loan amount is below $1,500,000.
- 10% Down Payment Jumbo Loan – eligible buyers can finance up to 90% loan to value when the loan amount is below $2,950,000
- 15% Down Payment Jumbo Loan – eligible buyers can finance up to 85% loan to value when the loan amount is below $3,500,000
- 20% Down Payment Jumbo Loan – eligible buyers can finance up to 80% loan to value when the loan amount is below $3,750,000
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 700 credit score for all applicants
- 10% Down Jumbo – Requires a min 720 credit score when the loan amount exceeds 1.5 mil However, buyers putting down 10% on lower purchase prices can often be approved with credit scores down to 680
- 15% & 20% Down Jumbo – Requires a min 720 credit score when financing over 2.5 mil. Lower credit down to 660 can be approved when putting 15%+ down and financing under $3,000,000
Please note: All 95% Jumbo financing options are capped at $1,500,000 loan amounts. All loan limits are based on the final loan amount, not 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 borrowers 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 $675,000 in Phoenix Arizona. She is interested in the 5% down loan option. In this scenario, Susan’s first mortgage amount would be $453,100 – the conforming loan limit for her county. Her second mortgage loan amount would be $188,150. The remaining difference of $33,750 (5%) would be her down payment.
Example of a 90% piggyback combo loan structure: Jim has decided to purchase a home for $650,000 in Charlotte, NC. He is interested in the 10% down loan option. In this scenario, Jim’s first mortgage amount would be $453,100 – the conforming loan limit for his county. His second mortgage loan amount would be $131,900. The remaining difference of $65,000 (10%) would be his down payment.
Please note that the standard conforming loan limits have recently increased from $424,100 up to $453,100. Certain high-cost locations are even greater at $679,650 – please see a list of the 2018 Conforming Loan Limits for each county in the U.S.
Basic 2018 Jumbo Loan Restrictions:
- All of the program requirements listed above require the property be owner occupied. If the property is a part-time vacation home or second home, please add 5% to the down payment requirement. Investment home purchases will require a minimum of 25% down payment
- All Jumbo programs will require full underwriting documentation in relation 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
- Home buyers should be prepared to show required mortgage payment reserves. This is the amount of liquid and non-liquid assets after down payment and closing costs. The number (months) of payments reserves will depend on many factors like loan amount, down payment and credit score.
- Only single family homes, condos, and townhomes are eligible. Building a new home on your own lot is not permitted. However, if you are purchasing a home that is being sold directly from a new home builder (spec home) this IS eligible. Lot loans, land loans, commercial loans, mobile homes, manufactured homes and multi-unit properties are also not approved
- All applicants must be U.S. citizens
- No short sales, foreclosure or bankruptcy in the previous 5 years – regardless of current credit score
VA Jumbo Loan Highlights:
- Loan amount up to 1.5mil for eligible military veterans
- No mortgage insurance
- Fix rate and ARM loan options
- No early payoff penalty
- 640 credit score required
- Loan amounts at or below the county conforming loan limit can be approved up to 100% financing. Loan amounts that exceed the county limit will require a small down payment of 25% on the amount that exceeds the basic conforming loan limit.
- Example: Home purchase price is $775,000. The county VA loan limit is $679,650 (California high-cost location) In this case the borrower exceeds the base loan limit in their property location by $95,350. So the borrower will need to put down 25% of $95,350 which equals $23,837
- Example: Home purchase price is $550,000. The county VA loan limit is $453,100 (Texas, not high-cost location) In this case the borrower exceeded the base loan limit in their property location by $96,900. So the borrower will need to put down 25% of $96,900 which equals $24,225
- Read more down payment calculations and the complete VA Jumbo Guide here.
Specialists are standing by to help with questions 7 days a week. Call us at 800-840-6449 or submit the Quick Call Form on this page. Our goal is to respond to all request within minutes (if requested) during normal hours.
Happy to serve buyers nationwide: Los Angeles County, Orange County, Dallas County, Harris County, Cook County, Maricopa County, Miami-Dade County, Riverside County, San Bernardino County, Hillsborough, Clark County, Broward County FL