Home buyers in Philly have an array of home financing choices today from conventional, government and Jumbo loans. Standard conforming loan limits in Pennsylvania are currently set at $766,550 except Pike County which has a limit of $1,149,825.
So what options do home buyers have for higher balance loans that exceed the standard conforming loan caps? The answer is Jumbo loans, they provide a great financing solution and often require a lower down payment than many assume.
Below we will break down the Jumbo requirements regarding loan limits, credit, and loan-to-value limits. Home buyers that have questions about the Philadelphia Jumbo loan criteria can contact us by calling the number above, or just submit the Request Contact form on this page – 7 days a week.
5% Down Jumbo
This option is particularly good for Philadelphia buyers that want to preserve as much cash as possible. The 95% LTV program has a loan limit cap of $1,575,000 and requires a 700 credit score. Borrowers will need to document a consistent 2-year employment history, income, and assets.
10% Down Jumbo
The 90% option allows for higher loan amounts up to $2,500,000. The program will also require a min 700 credit score for those buyers financing over $1.5mil. Credit score requirements are reduced to 670 for loan amounts below $1.5mil.
15% & 20% Down Jumbo
Loan amount caps extend to over $3.5mil. The min credit score requirements can range from 660-740 depending on the final loan amount.
Restrictions To Note:
- All the options listed above relate only to full-time primary homes. Vacation (part-time) homes are also eligible with 5% down.
- No monthly mortgage insurance is needed or required by the programs listed above. Depending on qualifying variables, home buyers will have a choice of a single loan or combo loan (80-15, 80-10) options. Applicants will have a choice of all the standard fix rate and adjustable rate options. No “interest only” terms are permitted, all terms are fully amortized with very attractive interest rates.
- As mentioned above, all programs will require fully documented income and assets. Jumbo loan programs often require payment reserves – the amount of savings left over after the down payment and closing costs are paid. The amount of reserves needed will depend on the loan amount and down payment. Some loan amounts below 1mil only require 0-3 months of reserves, while higher loan amounts over 2mil will often require 9-12 + months. Liquid funds are not required to meet this requirement – retirement accounts like IRA or 401K are often satisfactory.
- Eligible property types include regular single-family homes, condos, and attached town homes.
- These programs are available to approved buyers nationwide.
Veterans also have select VA Jumbo financing options for high loan amounts. This program offers some great benefits for eligible Vets in PA. Please read more about VA Jumbo Mortgages here.
Did you know we are here to serve you 7 days a week? Please call the number above, or just submit the Request Contact form on this page to connect with a loan advisor today.