Jumbo mortgages with only a 5% down payment are now available for approved home buyers in Indiana and throughout the nation. If you are purchasing a property and the price is $1,500,000 or less, you may have financing options up to 95% loan to value.
This jumbo mortgage loan requires good credit (scores of 700 or higher) and proof that you have sufficient income and saving reserves to cover the mortgage payments.
In addition, the home must be your primary residence. Again, the 5% down option is available for loan amounts up to $1,500,000. Higher loan amounts are available with a greater down payment. Available jumbo loan programs consist of standard fixed rates, adjustable interest rates like 5/1, 7/1 and 10/1 ARM along with combo loan structures. This program is especially helpful for buyers in higher costs suburban locations around Indianapolis, Fort Wayne, Evansville and South Bend.
Why Low Down Payment?
There are a few good reasons why a borrower may want to only put down 5% even if they have more saved. Some of them are as follows:
Funds for remodeling: Let’s face it, pretty much no home is perfect and will require some updating and personalization. With a low down payment, you can save the rest of your money for a needed addition, or general improvements.
Keeping funds in other investments: Check with your financial advisor first, but depending on current mortgage interest rates, it can make sense to put less down and keep your money working for you in stocks and other investments.
Waiting to sell your current home? Maybe it has taken longer than anticipated to sell your current residence and you can’t use the equity for a large down payment. Do you have to move now due to job relocation, etc? The 95% or 90% jumbo loan can provide an option to get into a new home with a minimum down payment.
While the real estate market has been healthy in Indiana over the last few years, the market is starting to cool in 2025. Take Indianapolis in Marion County for example, the current median home listing price is near $240,000 and the average days on the market is 21 days.
Jumbo Down Payment, Max Loan Amount & Minimum Credit Score:
Primary Owner Occupied Home Only
- 5% Down – $1,5000,0000 – 700 Credit
- 10% Down – $2,500,000 – 700 Credit
- 15-20% Down – $3,000,000 + 720 Credit
Requirements and Terms:
- All borrowers must fully document income and assets
- Single Family, townhomes, condos only. No construction-permanent financing on your own lot. Homes being sold new directly by the home builder are eligible
- Adjustable-Rate and Fix Interest Rate Options
- First and second mortgage combo (80/10 – 80/15) or single loan options are available depending on the state
- NO monthly mortgage insurance, PMI
- Common 10-30 year fixed rate and adjustable rate terms available.
To learn more, please call us today at 800-962-0677 or just submit the Quick Contact form on this page.
