The high-end housing market in Minneapolis has remained steady in recent years. Jumbo loan programs are helping to fuel the luxury market in Minnesota by offering new expanded low down payment options. In this short post, we will review all the low down payment Jumbo options, requirements and loan limits for homebuyers in MN.
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Home buyers should first recognize what is considered a Jumbo loan. Any loan amount that exceeds the standard Conforming loan limit is considered “Jumbo” in characteristics. The current conforming loan limit in Minneapolis – Hennepin County is $510,400. Any loan amount that exceeds this would be considered the “Jumbo” classification. Keep in mind that the loan limit is based on the actual mortgage financed, not the purchase price of the home.
Jumbo mortgages come in many variations today and most lenders and banks can offer financing options up to 80% loan to value. However, a select group of mortgage lenders is offering expanded options up to 90% and even 95% for approved buyers depending on the loan amount requested.
These programs do require borrowers have good credit, stable income and manageable debt. Below we will review the requirements in detail, please contact us with questions.
10% Down Payment Jumbo Loans:
- Buyers should have a minimum 700 credit score with no recent credit delinquencies.
- Loan amounts are available up to $3,000,000. *Note, loans over $2mil will require a 740 credit.
- Many other financing programs for higher loan amounts $3mil + for borrowers with 15-20% down.
- No PMI or mortgage insurance costs.
5% Down Payment Jumbo Loans:
- Buyers should have a minimum 700 credit score with no recent major credit delinquencies.
- Loan amounts are available up to $2,000,000. *Note, loans over $1.5 mil will require a 740 credit.
- Buyers should provide full evidence and documentation of income and assets, just like regular conventional loans.
- Self-employed home buyers should have a min 2-year history.
- No PMI
Please note, Investment properties are not eligible. All programs apply to owner-occupied and second homes only. Rate-Term jumbo refinance transactions are also eligible. Cash-out refi transactions are generally limited to 90% loan to value.
Jumbo Loan Terms & Details:
- Homebuyers can pick from many terms options like regular 30 or 15 fix or a variety of adjustable-rate terms.
- NO mortgage insurance or PMI required for all options.
- Gift funds are eligible for the down payment and closing costs.
- First time home buyers are eligible.
- Most property types are eligible, except the following: Vacant land, manufactured homes. Building new construction on your own land? Check into the Jumbo New Construction Program here.
- Pre-approvals are completed the same day, closings in as little as two weeks.
Contact us today to speak with a specialist 7 days a week to learn more. Serving Minnesota including Twin Cities, Minneapolis, St. Paul, Rochester, Duluth, Bloomington