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 $453,100.
Some high-cost locations in Washington can exceed this limit, but most the country is capped to $453,100. 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
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 reserve savings (after down payment is made) Some programs with higher loan amount may require 1 year + reserves.
- Your credit history: Credit scores of 700 or above to be approved
- Single-family homes, townhomes and condos 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: (800) 871-2636 – 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 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.
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