Nashville-Davidson County Jumbo Home Financing

Nashville has seen explosive population growth over recent years and the housing market continues to expand as a result. The current median home listing price is near $485,000 according to Realtor.com, an increase of over 20% since last year.

Jumbo mortgages have always filled the gap for home buyers that require financing on larger loan amounts that go beyond the regular conforming loan limits.

The current 2022 conforming loan limits in most of the Nashville area (Davidson County) are set to $694,600 for regular one-unit properties.  Please see the complete county by county loan limit list for Tennessee in the chart below.

Financing options for greater “Jumbo” loan amounts have typically been limited in the past. However, today many new low down payment Jumbo loans are helping to fill the gap by supplying high-end home buyers with new options.

These programs range from the typical 20% down payment, all the way up to 5% down payment. Loan amount limits vary based on the final down payment and the credit profile of the borrower. Below we have outlined all the important details buyers will need to know.  Please don’t hesitate to contact us to learn more, just call the number above or just submit the Quick Contact form on this page to speak with a Jumbo specialist.

Jumbo Down Payment & Loan Limit:

• 5% down payment (95% financing) Available up to $1,500,000 loan limits. 700 credit is required on all 95% options.
• 10% down payment (90% financing) Available up to $3,000,000 loan limits. 720 credit is required for loans exceeding $2mil. Buyers with lower credit scores (typically down to 660) can be eligible for lower loan amounts under $1,000,000
• 15% down payment (85% financing) Available up to $3,500,000 loan limits. 720 credit is required when financing over $2.5mil.  As above, lower credit scores can be approved for lower loan amounts.
• 20% down payment (80% financing) Available for loans over $3,500,000

Jumbo Loan Features:

• No monthly mortgage insurance costs. Depending on the program selection, buyers generally have the option of a single loan or combo (piggyback) loan options with no PMI. This includes 80-15 and 80-10 programs.
• All programs have the flexibility of common fix rate and adjustable rate terms.
• The low down payment features are especially good for home buyers relocating while waiting on the sale (equity) of their current home.
• Jumbo Refinance transactions are also eligible.

Jumbo Qualifying Requirements:

• 5% down payment Jumbo options are only reserved for owner-occupied and select vacation homes. Investment homes are not eligible.
• Single-family, condos, and townhomes are eligible. Home buyers that are purchasing new construction directly from the home builder are also eligible. Buyers that want to build on their own land with their own contractor can read about special construction to permanent financing here.
• Approved buyers will need to show evidence and document all income and asset, just the same as standard conventional loans.
• Debt to income ratio limits varies depending on many factors like down payment, credit, etc. Around 38-45% limit is a good baseline.
• Buyers will need mortgage payment reserves. Lenders consider “reserves” as the amount of savings or investments a buyer has left over after down payment and closing costs.  Retirement accounts are typically applied to this requirement. Buyers financing lower loan amounts (under $1mil) should typically have 3 months of payment reserves. Higher loan amounts will often require 6+ months.

Please connect with us today with questions. We can be reached 7 days a week by calling the number above, or just submit the Quick Request Form on this page.