A Jumbo loan is considered to be any mortgage greater than the 2025 conforming loan limit of $806,500 in Iowa. In the past, these programs often required putting large down payments, 15% or 20% to be qualified.
However, today many qualified home buyers in Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City and Waterloo have Jumbo financing options available up to 95% loan to value. Let’s take a closer look at the requirements below.
- 5% down payment options up to $1,550,000 – 700 credit required. For loans greater than $1.0m – 700 credit will be required.
- 10% down payment options up to $2,950,000–720 credit required if loan amount exceeds $2m.
- 15% and 20% programs to over $3,500,000–720 credit required if loan amount exceeds $3m.
- The programs above can be structured a few different ways, either single loan options or combo 1st and 2nd mortgage (80-10-10, 80-15-5, etc) All the Jumbo programs do not require monthly mortgage insurance, or more commonly known as “PMI”
- The programs permit a variety of different term choices depending on the down payment and loan amount – common 30 year, 15-year fix rate and 3/1, 5/1, 7/1, 10/1 ARM.
- Regular purchase and standard rate-term Jumbo refinance available. Cash-out refinance programs available to 90% LTV. Please browse the website for the latest qualifying criteria.
- Eligible active duty military and Veterans have VA high balance Jumbo loans available nationwide.
Lender Requirements:
- Home buyers must be able to document income and assets. Pay stubs, W2, and/or tax returns for the previous two years.
- Buyer needs to have adequate payment reserves after closing. 3–18 months depending on the loan amount, LTV, and credit score. The most common Jumbo loan amounts are between $800,000 – $1,250,000 – these programs generally require 3–4 months’ reserves on average. Retirement accounts do meet this requirement, accounts are not required to be liquid.
- Homeowners must occupy the home as a primary residence or second home. Investment home purchases start at 20% down payment.
- The property must be a standard single-family residence, condo or townhome. Purchasing large tracks of land is not permitted. Furthermore, building your own home is not permitted unless the property is being constructed and initially financed by a builder. Example: Builder constructs a spec home in new development and sells to you when completed – like any other regular transaction.
All the options above are available to approved buyers nationwide. Call us at the number above, or just submit the Quick Contact form on this page to be connected with a loan specialist 7 days a week.
