Each week we receive many questions about Jumbo mortgages. Below we have composed a list of the most common Jumbo home buyer FAQs. We encourage any home buyers that have questions to connect with us 7 days a week by calling the number above, or just submit the Quick Contact Form on this page.
- Question: Can I obtain a jumbo loan without a 20% down payment? A: For sure, depending on the loan amount and borrower qualifications, many jumbo loan programs are available with 10% and even a 5% down payment.
- Question: Will I be required to pay mortgage insurance on my jumbo loan if I finance more than 80% loan to value? A: No, most lenders utilize a combo loan structure to avoid the PMI costs. Basically, the loan is split into (2) separate loans by keeping the first primary loan at or below 80% LTV. Then a second mortgage is added to make up the difference.
- Question: Can I use the program to finance an investment property? A: Yes, investment properties are permitted with a jumbo loan. However, these programs will require full documentation and a 20%-25% minimum down payment. For borrowers that are self-employed or have difficulty documenting income, a DSCR investor loan may be the right choice.
- Question: Are the interest rates a lot higher on jumbo loans? A: In most cases with the combo loan structure, the first mortgage will be kept at the conforming loan limit. By doing so, the borrower receives regular conventional loan rates.
- Question: I want to have a contractor build my own home on land I already own. The loan amount will be around $1m and exceed the conventional loan limit, can I use a Jumbo loan for new construction? A: Yes, please read more about Jumbo loans for new construction.
Jumbo Loan FAQs Continued:
- Question: How much can I qualify for if I put only 5% for the down payment? A: assuming you meet the qualifying criteria required, the loan limit for 5% down is $1.5m -$2m depending on the property location.
- Question: I’m considering doing a cash-out refinance on my home for some needed improvements. How much can I cash out and how is this determined? A: Generally the limit for cash-out refinance is 80%-90% loan to value depending on the loan amount.
- Question: I will be relocating due to a job transfer and will be putting my current house for sale soon. Can I still qualify for a new mortgage even if my current house hasn’t sold? A: Yes, but you will need to qualify with both the current mortgage (PITI) plus the new home mortgage (PITI)
- Question: At what point is a mortgage considered Jumbo, Georgia specifically? A: For GA, and most of the country, the conforming loan limit is $806,500. This threshold does increase in more expensive or “high-cost” housing locations like San Francisco or LA for example. In some of these cities, the limit is $1,209,750. So any loan over this amount is considered Jumbo.
- Question: I want to use my VA benefits to purchase a home in San Diego, what is the maximum loan limit for this: A: Loan limits depend on the down payment. Qualified Veterans have 100% financing options available up to $2m with special VA High Balance loans. Higher loan limits up to $4m are also available, but this would require a minimum down payment of 5%+
Home buyers can read more Jumbo FAQs here. Please contact us with questions, or to learn more about a Jumbo loan approval.
