Below you will find some common Jumbo Purchase FAQs, please contact us with your questions.
Question: What is the minimum down payment required for a Jumbo loan in 2024? J. Sanders – Chicago, IL. Answer: The minimum down payment will depend on your credit scores. The 5% down Jumbo loan is popular for home buyers that have good credit over 680. However, borrowers that have lower credit scores will likely be required to put in at least a 10% down payment.
Question: Is the 95% financing Jumbo currently available to all states? W.Chambers – Colorado Springs, CO. Answer: Yes, all 50 states.
Question: Can I purchase a condo with the Jumbo loan? K. Myers – Dallas, TX. Answer: Yes, most condos are eligible for Jumbo financing.
Question: Can Doctors and Physicians use the 95% financing option? G. Lipton – West Palm Beach, FL. Answer: For sure, any home buyer who meets the qualification guidelines is welcome to apply regardless of occupation.
Question: I own a 1-acre lot that I want to build on with a small local builder, what are my options? N. Mathers – Charlotte, NC. Answer: Please read more about special Jumbo Construction loans here.
Question: What are my options to obtain a Jumbo loan with 5 percent down? L. Kears – Cleveland, Ohio. Answer: Most home buyers will have a few different choices like a single 95% loan, or a combo “piggyback” first and second mortgage – 80/15/5. What option makes the most financial sense will depend on many factors including the home buyer’s credit profile, reserves, etc.
Question: Can I get a fixed-rate term? I really don’t want to get an adjustable-rate mortgage – F. Gilford – Boston, Mass. Answer: Yes, the Jumbo programs offer both the fixed-rate and adjustable (ARM) rate 5/1, 7/1 or 10/1 terms….your choice.
Question: Do Jumbo loans have a temporary interest rate “buy-down” option? K. Leary – San Jose, CA. Answer: Yes, 2/1 interest rate buydown options are available. This can be especially helpful for buyers during an increasing rate environment.
Question: Does the Jumbo program have a penalty for paying off the loan early? H.Donaldson – Atlanta, GA. Answer: No, you can move or sell your home anytime you like without penalty.
Question: Can I get a Jumbo loan with a 5% down payment? V. Newberry – Salt Lake City, UT. Answer: Yes, assuming you meet the qualifying requirements outlined on the website. The 5 percent down jumbo loan is available to buyers nationwide.
Question: I want to purchase a vacation home in Florida, the purchase price of the home is only $250,000. I currently own my primary home with no mortgage, the value is $750,000. Should I get a new loan for the second home in Fla, or refinance my primary home (cash out) and purchase the next home outright? P. Miller – Charlotte, NC.
Answer: Great question. Both options could work – it really depends on the rate/terms. You could refinance your current primary home and cash out the 250K. Since the loan to value will be so low, it may make financial sense to go this route. You could also just look at taking out a Home Equity loan (HELOC) on your primary home for 250K. This option is good because the closing costs will be lower. Contact us, and we can discuss all the pros and cons.
Question: What kind of savings do I need to have in order to get approved? H. Goodwin – Kansas City, MO Answer: It really depends on your loan amount, down payment, and credit score. For the max 95% financing, you should plan on 3-6 months of mortgage payment reserves after your down payment is made. Non-liquid retirement accounts like 401K, and IRA do satisfy this request.
Question: How much can I borrow if I put in a 10 percent down payment? K. Hayward – Minneapolis, Minnesota. Answer: The loan amount limit for 90% LTV is $3,000,000 – must have a 700 credit score.
Question: I’m a veteran, are there any VA options for higher-priced homes here in California? A. Daniels – San Diego, CA. Answer: Yes, VA has high-balance jumbo loans available up to $4m. Which jumbo option will be best for you depends on a few things, but the VA option is certainly a good one for eligible Vets. Read more about California VA Jumbo Loans.
Question: Any options for home buyers with a past short sale? L. Mcgriff – Phoenix, Arizona Answer: Yes, please see the Jumbo Purchase page in the header above. There you will find special financing options for buyers with a previous short sale.
Question: How long does the process take to get pre-approved and closed on a Jumbo loan? D. Earnest – Houston, TX. Answer: The Jumbo pre-approval process can be completed in one phone call, oftentimes in under 30 minutes. The closing process usually takes about 25–30 days from the time the buyer has a fully executed purchase contract.
Question: I want to purchase an investment home in Orlando to rent out. How much down payment would be required for this? Andy. M Winter Park, FL. Answer: The down payment is typically 25% for a conforming investor loan. DSCR loans are also another popular option for RE investors.
Please find more Jumbo Loan FAQs here. Do you have a question or want to learn how to apply? Please contact by calling Ph: 800-962-0677 or just submit the quick contact form on the right side. Mobile users will find the quick form below.
