A Chicago 5% down jumbo loan is a mortgage amount over the conforming loan limit (set by the Federal Housing Finance Agency), which is currently set at $453,100 for a one unit property in most of the U.S. If a home buyers mortgage amount is $453,100 or higher, the loan is considered jumbo. The good news is 95% Jumbo mortgage financing is back in Chicago. Home buyers with little down payment now have some great financing options with as little as 5% down payment.
Below we have listed our current Jumbo loan to value credit requirements for primary homes loans in 2018:
- 95% Loan to value: Up to $2,000,000 with 700+ credit score. Buyers can choose 1 loan up to or a 1st and 2nd mortgage combo. Both Jumbo options have no monthly PMI
- 90% Loan to value: Up to $3,000,000 with 720+ credit score.
- 85% Loan to value: Up to $3,500,000 with 740+ credit score.
NEW UPDATE: 7/2017 – Home buyers in and around Chicago now have 100% Jumbo financing options available for loan amounts below $1,000,000. Please read more about the Chicago 100% Jumbo here.
The same factors examined when applying for any home loan are looked at when applying for a jumbo loan. However, qualifying for a jumbo loan often requires higher FICO credit scores, lower debt-to-income ratios, higher savings reserves than qualifying for a standard conforming home loan.
Current Jumbo Mortgage Requirements For Chicago home buyers:
- Income must be documentable with W2 and pay stubs. Self-employed borrowers will need to provide two years of tax returns.
- Assets must be documented – two months of savings, retirement accounts, etc.
- Your credit history (this is important, but Jumbo’s credit standards are flexible). A FICO score of 680 or above is needed to obtain loan approval.
- Single family homes and condos eligible.
- Primary Residence, Second homes and investment properties eligible. Down payment requirements will increase when the property is not a primary residence.
Jumbo Loan Benefits: There are many benefits jumbo loans offer when compared to other methods for financing more expensive homes.
- Financing available up to $6+ million
- The convenience of one loan for the entire loan amount instead of having multiple mortgages
- No monthly PMI option
- 5% down payment for amounts to 1.5mil
- 100% for amounts up to 1mil (Chicago area only)
- Fixed and adjustable rate mortgage (ARM) options available
- Same day pre approvals, with in-house underwriting
To ask questions or apply for a Jumbo loan in Chicago please submit the “Request Contact” form at the top of your screen. Please also feel free to call us 7 days a week at ph: 800-871-2636
Serving all of Illinois: Chicago, Cook County, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Cicero, Champaign, Bloomington, Decatur, Arlington Heights, Evanston, Schaumburg IL.