A jumbo loan in Baltimore is defined as a loan that exceeds the mortgage limit designated 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 Mae, Freddie Mac or FHA, then you would need to look at a Jumbo home loan.
In the state of Maryland, the 2024 limit of conventional loans is any mortgage below $766,550. This amount is higher if you are looking forward to investing in multi-family properties. In a city where the cost of living is higher, low down payment jumbo financing just may be the right option.
Baltimore Jumbo Loan Down Payment:
When we talk about a 90% Jumbo mortgage, the buyer is required to pay a down payment of 10 percent of the total amount. This has made things easier for 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 95 percent Jumbo loans, the borrower only needs to pay a 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 $1,750,000 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 updates and lender guidelines.
Primary Residence Requirements:
- 95% financing up to $1,750,000 (80/15 combo loan or single 95% loan options) 700 credit score required
- 90% financing up to $3,000,000. 700 credit score required
- 85% financing up to $3,500,000. 720 credit score required
- No monthly mortgage insurance “PMI”
- Choose between a fixed interest rate or an adjustable rate term
- No pre-payment penalty – sell your home, or pay off your loan anytime
Second Home, Vacation Home Requirements:
- Credit requirements are the same as listed above
- 90% financing up to $2,000,000
- 85% financing up to $2,500,000
Additional Financing Notes:
- All jumbo loan programs above will require full income documentation for the previous 2 years. Asset documentation for the down payment will be preferred for the previous 3 months.
- Depending on the loan amount and down payment, borrowers will need a min of three 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