Similar to other major metropolitan areas across the country, median home sales prices in Atlanta have increased significantly in recent years and are currently around $395,000. Compare that with five years ago, when the median sales price was just under $300,000. In the jumbo luxury market, home values have impressed equally well.
Based on the median home price in Atlanta, a standard conforming or FHA will be sufficient for most buyers. But what about buyers purchasing in more expensive suburbs like Buckhead, Midtown, Peachtree, etc. where home prices often have multi-million dollar price tags? A jumbo loans will often be in order for these buyers that are exceeding the 2025 conforming loan limit of $806,500
Jumbo loans today also have some pretty attractive interest rates, very near those reserved for conforming loan amounts. Historically, jumbo interest rates have been anywhere from 0.50%-1% higher yet recently that gap has narrowed, and jumbo interest rates are very near their conforming rate cousins.
As interest rates overall have risen over the last year, the minimum Jumbo down payment requirements haven’t changed very much. Most jumbo loan programs ask for a down payment of at least 10% and some banks require a 20% down payment. When buying and financing a home that is listed at $1,000,000, a 20% down payment is $200,000.
However, many buyers in the Atlanta area who are in the jumbo market don’t always want to tie up that much of their own funds in a real estate transaction. Real estate is not the most liquid of transactions and while a down payment represents the initial equity in a real estate purchase, the equity is in the property and not in the buyer’s bank account.
Certain buyers may prefer to retain as much cash as possible to do needed home renovations or improvements after closing. Or they are relocating and have most of their equity tied up in their old home that hasn’t closed yet. For these buyers, there is another option that requires only a 5% down payment.
This 95% program is actually a combination of two loans, a first mortgage representing 80% of the sales price and a smaller subordinate second lien of 15%. The buyers in this example need only make up the remaining 5%. For a $1,000,000 home, the buyers would put down $50,000, plus closing costs.
This structure is often referred to by lenders as an “80-15-5” combo piggyback loan. The minimum credit score is as low as 680 and is available to finance loan amounts up to $1.5 million with no monthly mortgage insurance costs.
Buyers also have a choice of a single 95% loan option, which will require less closing costs. However, the rates could be higher depending on the total adjusted loan amount the buyer seeks. All the pros and cons of each option will be discussed during the initial phone interview with your loan officer.
Note: The 95% Jumbo loan is a fully documented loan that requires income and asset documentation, among other guidelines listed below. The exception to this is a special bank statement deposit mortgage for Atlanta self-employed borrowers. These requirements apply to both purchase and Jumbo rate-term refinance loans.
Atlanta Jumbo Mortgage Requirements:
- The home must be a primary residence or second home. Investment properties are permitted with a higher 20% down payment.
- Credit must be above 700 for all borrowers listed on the loan application
- Only single-family homes, town homes, and select condos are permitted. No vacant lot loans, or building on your own land. * Special construction to permanent financing is available for those building on their own property.
- Reserves will be required (amount of cash after down payment and closing costs) The exact amount of reserves will depend on the overall loan amount and down payment. The typical range is 3–9 months of reserves
- Buyers can find all the latest Jumbo Purchase FAQ’s here
Homebuyers that require even larger loan amounts can finance up to 90% loan to value with a $2.5 mil loan amount cap. All the 90% and 95% jumbo options are available to qualified buyers nationwide.
Happy to serve buyers across the U.S. including Georgia: Atlanta, Marietta, Buckhead, Macon, Alpharetta, Augusta, Savannah, Columbus, Fulton County, DeKalb, Gwinnett, Cobb, Clayton, Coweta, Douglas, Fayette, Henry.
Please call us with questions at Ph: 800-962-0677, or just submit the Quick Contact form on this page.
