Jumbo mortgage options in Phoenix – Maricopa County have recently expanded to offer greater options for home buyers that require Jumbo home financing. These adjustments include greater loan amount limits for 95% and 90% financing programs.
Please note the requirements below apply to all of AZ including Phoenix, Tucson, Mesa, Chandler, Scottsdale, Glendale, etc. Home buyers that have questions can connect with us by calling the number above, or just fill out the Quick Contact form on this page.
Regular conforming loans are limited to $548,250 loan amounts in Arizona for 2021. Any mortgage amount exceeding this would be considered “Jumbo” in nature. Jumbo loans have historically required larger down payments when compared to their conventional loan cousins. However, new Jumbo guidelines now allow qualified homebuyers financing with as little as a 5% down payment.
Jumbo loans come in many variations including single loan and combo “piggyback” loan varieties. The loan option that makes the most sense for you will depend on many variables including loan amount, credit profile, property state, etc. Let’s look at the most common 5% and 10% down payment requirements below.
Update 2021: The loan limits listed below apply only to AZ properties. Low down payment Jumbo programs are available in all the other states, but may have reduced loan limits.
Phoenix 95% Jumbo:
- Loan amount limit $2,000,000 for Arizona properties.
- 700 credit score required.
- Available for primary homes only. Investment homes require a minimum of 20 percent down payment.
- Single-family homes, townhomes and typical condos are approved. Multi-unit properties, acreage, land, not permitted. Homebuyers interested in building on their own land can read more about Jumbo Loans For New Construction.
- All loan programs require complete income and asset documentation – the same as any conventional government-backed loan.
- Buyers can pick from a variety of fixed-rate and adjustable-rate terms available.
- Jumbo Refinance programs are available for current homeowners.
Phoenix 90% Jumbo:
- Loan amount limit $3,000,000
- Credit score requirements vary based on the loan amount. Generally, 680 credit is permitted for loans below $1.5mil. 720 -740 credit scores are needed for higher loan amounts.
- All the same requirements as noted above.
Buyers should also note each program will have mortgage reserve requirements. Mortgage reserves are assets you have remaining after down payment and closing costs obligations are met. Reserves are defined as assets like bank savings, retirement 401K account, stock, cash value of life insurance, or bonds.
Most Jumbo loan programs will require at least 3 to 6 months of reserves. This number generally increases with greater loan amounts, as some high loan amounts ($2mil +) may require 12 months or more.
Example: A buyer’s mortgage payment with taxes and insurance equals $7,000 per month. If the program requires 6 months of reserves, the borrower should be able to document $42,000 in reserves.
Greater loan amounts exceeding $3mil are available to qualified borrowers with greater down payment amounts. Buyers can read all the Jumbo purchase requirements here. Please reach out to us 7 days a week to learn more.