The housing market has continued a gradual rebound in Washington state, Seattle in particular. As a result, lenders are starting to relax mortgage qualifying requirements and allowing for higher loan to value. The more relaxed mortgage guidelines have worked their way into the Jumbo market as well. A Jumbo loan is a mortgage that exceeds the conforming loan limits of $766,550.
Some high-cost locations in Washington can exceed this limit, but most of the country is capped at $766,550. Down payment requirements for non-conforming are generally higher, until now. Seattle Jumbo loans with only 5% down payment are now available for new home buyers and existing homeowners that want to refinance. Here is a rundown of the latest jumbo qualifying criteria: This applies to both purchase and rate-term refinance transactions nationwide.
- 95% Financing Jumbo: Up to $2,000,000: min 700+ credit score. Buyers can choose from a single loan up to $1,500,000 or a 1st and 2nd mortgage (80/15/5) combo up to $2.0m. Both Jumbo options have NO monthly mortgage insurance (PMI)
- 90% Loan to value: Up to $3,000,000 with 720+ fico score
- 85% Loan to value: Up to $3,500,000 with 720+ fico score
Seattle Jumbo Home Buyer Requirements:
- For Income: buyers must document with W2 and pay stubs. Self-employed (1099) borrowers will need to provide two years of tax returns.
- Bank Saving and assets: must be well documented (only what’s needed to close) Two months of savings, retirement accounts, etc.
- Reserves: buyers should plan to have a min of 6 months of reserve savings (after the down payment is made) Some programs with a higher loan amount may require 12 months of reserves.
- Your credit history: Credit scores of 700 or above to be approved
- Single-family homes, townhomes and condos are eligible
- Primary Residence, vacation homes only to 95%. Down payment requirements will increase to 15% when the property is an investor purchase.
The advantage of 5% down payment Jumbo loans:
- Fast loan pre-approval process – takes only 15 min. To begin just call ph: (888) 705-1975 – Monday – Sunday
- Single Family Homes, Town Homes and approved Condo eligible
- Same day loan pre-approvals, with in-house underwriting
- The convenience of one loan for the entire loan amount instead of having multiple mortgages
- Financing available up to $5,000,000
- Fix and adjustable rate mortgage (ARM) options are available
- No monthly private mortgage insurance (PMI) option
- NO origination fee on Jumbo fixed-rate or adjustable-rate mortgage home loans for purchase transactions. No origination fee significantly reduces closing costs and saves you money.
Have questions? Just submit the Request Contact Form on this page. Five Stars serves buyers around the nation 7 days a week. Including Washington State: Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Yakima, Spokane Valley, Federal Way, Bellingham, Kennewick, Auburn, Marysville, Pasco