A Baltimore jumbo loan is defined as a loan that exceeds the loan limit assigned by Fannie Mae and Freddie Mac. If you are a resident of Baltimore and want to acquire a loan that exceeds the limits set by Fannie, Freddie or FHA, then you would need to look at a Jumbo loan.
In the state of Maryland, the limit of conventional and FHA loans is generally below $647,200. This amount is higher if you are looking forward to investing in multi-family properties. In the city where the cost of living is higher, low down payment jumbo financing just may be the right option.
Save big on Jumbo loans
When we talk about 90 percent Jumbo mortgage, the buyer is required to pay the down payment of 10 percent of the total amount. This has made things easier for the buyers in higher-cost locations in Maryland, who have limited resources for a large 20% down payment required by most lenders and banks today. Similarly, in the case of 96.5 percent Jumbo loans, the borrower only needs to pay 3.5 percent down payment of the total amount. Besides easing up things concerning jumbo loans in Baltimore, eligible borrowers can still purchase homes up to $1,250,000 with only a 5% down payment.
Of course, the Jumbo mortgage has minimum requirements that must be met just like conventional loans. Here is a snapshot of the latest loan to value lender guidelines.
Primary Residence Requirements:
- 97% financing up to $1,500,000. 740 credit required
- 95% financing up to $1,500,000 (80/15 combo loan or single 95% loan options) 700 credit score required
- 90% financing up to $2,000,000. 700 credit score required
- 85% financing up to $3,000,000. 720 credit score required
- No monthly mortgage insurance “PMI”
- Choose between a fixed rate or adjustable rate term
- No pre-payment penalty – sell your home, or pay off your loan anytime
Second Home, Vacation Home Requirements: credit requirements same
- 95% financing up to $1,500,000
- 90% financing up to $2,000,000
- 85% financing up to $2,500,000
- All jumbo loan programs above will require full income (2 years) and savings documentation
- Depending on the loan amount and down payment, borrowers will need a min of six months of payment reserves. Loan amounts over $1.5mil should plan for 6 months min of payment reserves
- Jumbo loans for investment properties are available starting at 80% loan to value
- All the guidelines apply to both purchase and rate-term refinance loans. Contact us about cash-out refinance options
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Assisting home buyers across the U.S. including Maryland – Baltimore, Columbia, Germantown, Silver Spring, Waldorf, Ellicott City, Glen Burnie, Frederick, Dundalk, Rockville, Gaithersburg, Bethesda, Towson, Bowie, Aspen Hill, Wheaton MD 2022