Nashville has seen explosive population growth over recent years and the housing market continues to expand as a result. The current median sold home price in Nashville is $440,000 according to Redfin, a slight increase year-over-year.
The current 2024 Conforming Loan Limits in most of the Nashville area (Davidson County) are set to $943,000 for regular one-unit properties. So based on the median home values, a standard conventional mortgage will be sufficient for the majority of home buyers.
But what about buyers in more expensive neighborhoods around Nashville? Median home prices in locations like Belle Meade, Green Hills, or Forest Hills can easily exceed $1m, this is where jumbo mortgages help fill the gap for home buyers that require high-balance loans.
Financing options for greater “Jumbo” loan amounts have typically been limited in the past. Today, many new reduced down payment options today are helping to supply high-end home buyers with new options.
Many homeowners have a large portion of their equity tied up in their current property. These programs can especially be helpful in “bridging the gap” for buyers relocating while trying to sell their current residence.
New jumbo programs range from the typical 20% down payment, all the way up to a 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 to speak with a Jumbo specialist 7 days a week.
Nashville Jumbo Down Payment & Loan Limits:
- 5% down payment (95% financing) Available up to $1,500,000 loan limits. 680 credit is required on all 95% options.
- 10% down payment (90% financing) Available up to $3,000,000 loan limits. 700 credit is required for loans exceeding $2mil. Buyers with lower credit scores (typically down to 660) can be eligible for lower loan amounts under $1,500,000
- 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 customary fixed interest rates 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.
Nashville Jumbo Qualifying Requirements:
Nashville Jumbo Qualifying - 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 who are purchasing new construction directly from the home builder (spec site-built home) 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 assets, just the same as standard conventional loans.
- Debt-to-income ratio limits vary depending on many factors like down payment, credit, etc. Around 42-48% 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 the 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 7 days a week by calling the number above, or just submit the form on this page.
About the author: Jamie Chambers has been a mortgage professional and data researcher for over 21 years. With vast experience in all sides of the banking, broker, and correspondent lending side of the business.