Low Down Payment Jumbo Mortgage
95 Jumbo Loan | 5% down payment Jumbo| 10% down payment. VA Jumbo Loans, Jumbo Cash Out Refinance. Serving buyers nationwide including Chicago, Miami, Orlando, Tampa Florida, Los Angeles, San Francisco, San Diego, Califonia, Portland, Seattle, Phoenix Arizona, San Antonio, Dallas Texas, St. Louis, Kansas City, Denver, Charlotte, Atlanta, Boston, Philadelphia, New York, Cleveland, Las Vegas
Home buyers will find the latest 2018 Jumbo loan requirements below. Please submit the short Request Contact form at the top of this page to quickly connect to a specialist 7 days a week. We are proud to serve buyers nationwide.
A Jumbo mortgage is a loan amount greater than the industry definition of a conventional loan. This standard is set by the two largest secondary market lenders, Fannie Mae and Freddie Mac. As of 2018, conforming loan limits are set at $453,100 for most locations across the country, with the exception of select “high cost” counties in California, Florida, Colorado, Virginia, etc. The high costs locations have conforming mortgage limits up to $679,650 for one-unit properties. Any mortgage amount that exceeds this will be considered a Jumbo loan.
The Jumbo mortgage process is similar to that of a conforming loan. The primary difference is a Jumbo loan is purchased by investors other than Fannie Mae & Freddie Mac. Historically Jumbo mortgages require a greater down payment. However, there are many new options available to home buyers seeking financing without the traditional 20% down.
Years ago, conforming loan limits were increased to combat the liquidity fears in the mortgage markets due to the subprime meltdown. This has led to lower mortgage interest rates for high balance financing. The “conforming Jumbo” programs have been developed and are now available in select high-cost locations. We are happy to provide the latest information on all low down payment Jumbo programs available nationwide. The reduced down payment options are very popular today among Doctors, Physicians, Attorneys and other professionals that have strong documented income, but limited savings. Active and past military Veterans are also encouraged to learn more about special VA jumbo mortgages here.
Jumbo Purchase & Rate-Term Refinance Mortgage Highlights:
- Jumbo loans up to 95% financing with NO mortgage insurance “PMI” Please see the video below for more information.
- Single loan and 80-15 or 80-10 combo “piggyback” options available depending on the property state.
- The home must be a primary residence for 95% financing.
- Existing single-family homes, townhomes, and most low and high rise condos are eligible. U.S. properties only.
- Vacant land, Acreage, Lot loans, Rehab, Manufactured, and Commerical properties are NOT eligible. Construction-to-Permanent financing (build on your own lot) is also not permitted. The exception to this is new construction that is initially financed and sold by a new home builder (new community spec home for example)
- Adjustable Rate Mortgage (3/1, 5/1, 7/1, 10/1 ARM) or Fix Rate 15, 20, 30-year terms with no PMI. Interest-only options available in select cases. Negative amortization terms are not available.
- Full income and asset documentation required for all programs.
- Payment reserves required after down payment and closing costs:
- Loans under $750,000 may require no reserves from the home buyer.
- Loans exceeding $750,000 will require some reserves, 3-12 months depending on the final loan amount and applicants credit profile.
- Non-liquid retirement accounts like 401K and IRA can be used to satisfy these requirements.
- Second homes and vacation homes can be financed up to 90% LTV max.
- Loan amounts up to $3.0M (even higher with the Super Jumbo – see separate page)
- Regular home purchase and Jumbo rate & term refinance available. See special cash out refi options down below.
Current Jumbo mortgage loan-to-value limits and credit standards for primary residence homes as of 2018.
- 95% financing: $453,100 – $1,500,000. 700 credit score required on all 95% Jumbo mortgages. Only 5% down payment with NO monthly mortgage insurance (PMI)
- 90% financing: $453,100 – $3,000,000. 10% down Jumbo requires 680 credit score for loan amounts below $1,000,000. Loan amounts that exceed $2,000,000 will require a 720 credit score, NO mortgage insurance on all options
- 85% financing: $453,100 – $3,500,000. 15% down Jumbo requires 660 credit score for loan amounts below 2mil. Loan amounts over 2mil will require a 700 credit score, NO PMI
- 80% financing: Options to over $3,500,000
- The programs are available to qualified home buyers in all 50 states
- Second home & Vacation home purchase loans start at 90% loan to value
- Investment property purchases start at 75% loan to value
Important Program Reminders:
- 95% LTV Jumbo programs have a $1,500,000 loan limit cap.
- 95% financing programs are strictly reserved for home purchase and rate-term reduction refinance transactions. This includes homeowners that want to lower their current interest rate or homeowners that want to simply change the term of their Jumbo loan. Example: switch from an adjustable rate to fix rate loan. Homeowners that want to inquire about cash-out refinance should refer to the requirements listed below.
- All financing limits are based on the final loan amount, not the sales price of the home.
- 5% down payment options are reserved strictly for owner-occupied properties.
- Construction-to-Permanent, building on your own lot, and renovation loans are not permitted.
- No past short sales or foreclosures in the previous 5 years regardless of credit score. *Special short sale financing options listed below.
Jumbo Cash Out Refinance Options:
Cash out equity options are available to current homeowners. Qualified applicants can pay off higher interest debt, complete a home remodel or start a new business venture. The loan amount limits and LTV caps vary depending on the state. Please note the requirements below only apply to cash-out refinance. Borrowers that are strictly reducing their interest rate and/or term should refer to the basic refinance criteria listed above.
- Owner occupied homes only
- Full income and asset documentation required for all options
- Max 90% loan to value for cash out refi programs
- 90% cash out – loan amount limit is $1,500,000
- 80% cash out – loan amount limit is $2,500,000
- 720 credit score required when the loan to value exceeds 85%
- Borrowers will need 12 months of payment reserves (savings, 401K, IRA, etc)
- Both fixed rate and adjustable interest rate terms available – both with no mortgage insurance
- In certain cases buyers closing costs can be included (rolled into) new mortgage limiting out of pocket costs
Additional Jumbo financing options for buyers with past short sale:
Home buyers with a previous short sale can now finance up to 85% loan to value. Please see the special guidelines below.
- Short sale must be a minimum 2 years discharge (not filed date) clean credit post short sale required
- 700 credit score required
- No foreclosure or bankruptcy in the previous 4 years
- Minimum 12-month payment reserves required (after down payment) Retirement accounts like IRA, 401K satisfy this request
LTV and loan amount limits: *This only applies to buyers with a previous short sale:
- 720 credit score – up to 85% LTV, loan limit $1,000,000, 12 months reserves
- 720 credit score – up to 85% LTV, loan limit $1,500,000, 18 months reserves
- 720 credit score – up to 70% LTV, loan limit $2,000,000, 18 months reserves
- 700 credit score – up to 80% LTV, loan limit $1,000,000, 12 months reserves
For loans in excess of $3.0M, we recommend our Super Jumbo Loan programs.
Have questions or want to discuss your options in detail? Please submit the Request Contact form at the top of this page to be connected with a loan specialist, 7 days a week.