Borrowers often ask “Can I Get Jumbo Loan With 10% Down Payment?” The short answer is Yes, assuming the borrower meets the loan qualifying requirements listed below. In fact, there are also financing options that permit only 5% down, but these options have more restrictive loan amount limits.
The 10 percent down payment options are especially attractive for homebuyers purchasing in more expensive housing locations in Florida, California, Arizona, Colorado, Massachusetts, New York, etc. It’s no secret that home prices have exploded in most markets over the last 18 months. With that comes the need for greater purchasing power and loan amounts.
Let’s review everything home buyers will want to know before applying. Please remember to contact us at the number above, or just submit the Quick Contact form if you need assistance – 7 days a week.
Note: As of 2021, some loan amount limits for 10% and 5% down have been revised due to continual market fluctuations. Please contact us today to inquire about the latest limits.
90% Loan to Value:
- Loan Limit Cap = $2,500,000. Different loan structures are available depending on the state – NO mortgage insurance (PMI) is needed.
- The borrower’s credit score should be at least 660 when the loan amount is below $1.0mil. For loan amounts $1.0 -$1.5mil – credit scores should be above 680. Score over 720 are generally needed for loans $2mil +. No serious delinquent accounts, BK, Short-Sale Foreclosures in the previous 5 years. See special 20% down options for borrowers with past short sale financing on the Jumbo Purchase Page
95% Loan To Value:
- Loan Limit Cap = $1,000,000+ depending on property state/location. ($2mil limit for AZ properties) Different loan structures are available depending on the state – NO mortgage insurance is required.
- Borrowers credit score should be 700 minimum to be eligible
Applicants with 15% or 20% down have higher loan caps available. In addition, these buyers can finance lower loan amounts (450K- $1,000,000) with a credit score down to 650 in some cases.
This information also applies to homeowner refinance. Homeowners that want to refinance their current loan to reduce the interest rate, term, etc, please refer to the Jumbo Refinance page. Please note, Jumbo cash-out refinance programs are also available but limited to 90% loan to value.
Loan Qualifying Restrictions: 5%, 10%, 15% and 20% Down Programs
- All programs are “full doc” and require buyers to properly show income and assets. *Special bank statement qualifying programs are also available for self-employed buyers but limited to 90% loan to value.
- Debt to income restrictions is generally limited to 40%. However, the limits can be exceeded in certain cases to 45%+ depending on factors like the loan amount, credit score, down payment and overall strength of the applicant’s profile.
- Buyers should have some mortgage reserves after closing. The term “reserves” refers to the amount of savings a buyer has remaining after their down payment and closing costs. Like the debt limits above, the amount of reserves can & will vary depending on the loan size, credit, etc. Some borrowers with strong credit profiles are not required to have reserves.
- The programs are available for standard single-family residential housing (regular houses, townhomes, and condominiums) Multi-unit, vacant land, large acreage/farms and commercial properties are not eligible.
- Standard fullly amortized (principal and interest) program terms available. This includes 15 and 30 yr fix and adjustable 5-1, 7-1, 10-1 ARM’s
Jumbo Refinance Options:
There is also plenty of regular rate reduction and cash-out refinance programs available as well. Qualified borrowers can do 90% cash-out up to $2M with a 740 credit score, or $3M to 80% loan to value. With the current low interest rate environment and exploding home equity, now might be a good time to consider a cash-out refinance to help fund other products or investments.
Questions? please contact us at the number above – 7 days a week.