The high-end housing market has remained steady during the last few years. Jumbo loan programs are helping to fuel the luxury market by offering new expanded low-down payment options. In this Pittsburgh Jumbo loan review, we will review the latest requirements and loan limits for homebuyers in Pennsylvania.
Homebuyers 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 2024 Pittsburgh Conforming Loan Limit is $766,550. Keep in mind that this limit is set to the actual loan financed, not the purchase price of the home.
Jumbo loans come in many varieties today, and most banks and lenders can offer financing options up to 80% loan to value. However, a select group of mortgage lenders is offering financing up to 95% – as little as 5% down payment for approved buyers in PA.
These programs do require the home buyer to have good credit, stable income, and manageable debt. Below we will review the requirements in detail.
95% Jumbo Financing (5% Down Payment)
- Buyers should have a minimum 700 credit score with no recent credit delinquencies.
- Mortgage amounts are available up to $1,500,000. *Note, loans over $1.0 mil will require a 700 credit.
- Borrowers should provide full evidence and documentation of income and assets, just like regular conforming loans.
- Self-employed home buyers should have a min 2-year business history. Please also learn about the bank statement deposit program.
90% Jumbo Financing (10% Down Payment)
- Buyers should have a minimum 700 credit score with no recent credit delinquencies.
- Loan amounts are available up to $2,500,000. *Note, loans over $2,000,000 will require a higher 720 credit score.
- Many other financing programs for higher loan amounts of $3mil + for borrowers with 15-20% down.
- All other requirements listed above apply.
Please note, all programs apply to owner-occupied and second homes. Rate-Term refinance transactions are also eligible. Cash-out refi transactions are limited to 90% loan to value, regardless of the loan amount. Investment properties are not eligible.
Additional Jumbo Program Notes:
- Buyers can pick from many terms options like fixed or adjustable rates.
- NO mortgage insurance PMI required – even when financing above 80% loan to value.
- Buyers can use gift funds for the down payment and closing costs.
- Pre-approvals are completed the same day, and closings are in as little as two weeks.
- First-time home buyers are eligible.
- All property types are approved, except the following: Vacant land, and manufactured homes. Buyers can learn more about Jumbo Construction Loans here.
Please read more details on the website and contact us today by calling the number above, or just submit the Quick Contact Form on this page.
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