Qualified home buyers in Connecticut now have plenty of new Jumbo mortgage options available. Many of these new financing options require very little down payment and offer aggressive loan limits. Below we will outline all the details.
Please contact us with any question 7 days week, but calling the number above or just submit the Quick Call Form on this page. We assist home buyers nationwide including CT: New Haven, Stamford, Hartford, Naugatuck, and Manchester.
Mortgages are categorized as “Jumbo” when they exceed the Conforming Loan Limit These limits are set each year by The Federal Housing Finance Agency (FHFA) The current limit for a standard 1 unit property is $510,400 for most locations across Connecticut. Fairfield is the only exception as it’s base conforming loan limit is slightly higher $601,450.
Jumbo loans come in all shapes and sizes, just like Conventional loans. The only real difference has typically been the down payment requirements. Most lenders and banks required a minimum 20 percent down, but that is now changing.
New options have emerged that permit financing up to 95% loan to value. Below we will outline the down payment and credit requirements for each low down payment option, please contact us today to learn more.
Jumbo – 5% Down Payment:
- Applicants should have a minimum 700 credit score
- Loan amount limit is $2,000,000. *Buyer financing over $1.5mil should have a min 740 Fico
- The program requires full income and asset documentation. Two years tax returns and W2’s if applicable
- This program applies to strictly owner-occupied and vacation homes
- Regular single family homes, condos, townhomes are permitted
Jumbo – 10% Down Payment:
- Applicants should have a minimum 720 credit score
- Loan amount limit is $3,000,000. *Buyer financing over $2mil should have a min 740 Fico
- The program requires full income and asset documentation. Two years tax returns and W2’s if applicable
- This program applies to strictly owner-occupied and vacation homes
- Regular single family homes, condos, townhomes are permitted
Jumbo – 15% & 20% Down Payment:
- Loan limits up to $4,000,000 +
- Fico score requirements vary based on actual loan amount. Example: Borrowers with lower credit scores down to 660 may be approved if their loan amount is below $2mil. Loan amounts exceeding this amount will generally require a min 700 credit
Special Notes:
- Buyers can choose from a variety of common fix rate and adjustable rate (ARM) terms – all with NO pre payment penalty
- All programs require mortgage payment reserves. This is the dollar amount of assets the applicant retains after closing. Example: 95% financing on a $1.5mil home may require 9 months of payment reserves. If the monthly mortgage payment (with taxes/home insurance) is $6K per month, the borrower should be able to document $54K in savings. Note, these reserve requirements can often be satisfied with regular liquid and non-liquid accounts like 401K or IRA.
- All programs guidelines above also apply to rate term refinance. Jumbo cash-out refinance programs are also available, but these programs are limited to 90% loan to value.
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