Low down payment Jumbo home mortgages are making a comeback in Connecticut. You don’t always have to be a cash buyer or have a large down payment to become a homeowner in a luxury market. Qualified homebuyers in Stamford, Greenwich, New Haven, etc can now finance luxury homes with as little as a 5% or 10% down payment.
What is a Jumbo Loan in Connecticut?
As the name suggests, a jumbo mortgage is a large loan amount. This is a mortgage that exceeds the conforming or conventional loan limits standardized by Fannie Mae & Freddie Mac (the government-sponsored agencies that purchase loans from lenders and banks) In most locations around the U.S, Connecticut included, the 2024 conforming limit set by Fannie Mae and Freddie Mac is $766,550 for a regular 1-unit property.
What makes a Jumbo loan so good?
Jumbo loans are ideal for home buyers looking for luxury homes. These loans are designed to simplify home buying in pricey markets by covering the full cost of the loan, so there is no need for borrowers to drain their cash reserves. Once borrowers qualify for jumbo loans, there is no need to take out 2 or more loans to purchase.
Just like conventional mortgages, jumbo loans can be obtained at a fixed and adjustable rate 3/1, 5/1, 7/1, or 10/1 term. The interest rates on a jumbo loan are slightly higher due to the incurred risk. However, the rate gap has reduced significantly to spur home sales and economic growth, making jumbo loans extremely affordable for buyers.
Other benefits of jumbo loans include:
- No PMI (Private Mortgage Insurance) requirements
- Both 80/15 combo loans and single 95% LTV jumbo options
- Both fixed or adjustable rates options are available
Connecticut Jumbo Mortgage Requirements:
Below we will take a look at the eligibility and qualification standards for a jumbo loan. To qualify for a jumbo loan, a borrower should expect: Homebuyers that have questions should reach out to us 7 days a week by submitting the Quick Contact Form here.
- To make at least 5 percent of the purchase as a down payment. The down payment for this loan is higher typically because there is no PMI requirement
- Minimum 680 credit score to qualify for any jumbo loan program, unless the down payment is greater than 10%. 700 credit score may be required for higher loan amounts over $1.5 mil
- Full documentation is required for income and assets
- The maximum debt-to-income ratio should not be more than 45 percent
- Should have at least 3 months’ worth of mortgage payment reserves (after down payment) in the account after closing. Many times retirement accounts like IRA and 401K do satisfy this request. Lenders like to see borrower’s reserves as it enables them to ensure that the borrower has the ability to make monthly loan payments
The basic loan amount and down payment caps. These programs are available for both purchase and refinance.
- 95% Jumbo Financing – available up to $1,500,000
- 90% Jumbo Financing – available up to $2,500,000
- 85% Jumbo Financing – available up to $3,000,000 (720 credit required)
Want to learn more? Please call or just submit the Quick Contact Form on this page 7 days a week.
|FAIRFIELD COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|HARTFORD COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|LITCHFIELD COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|MIDDLESEX COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|NEW HAVEN COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|NEW LONDON COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|TOLLAND COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|
|WINDHAM COUNTY||$ 766,550||$ 981,500||$ 1,186,350||$ 1,474,400|