Home prices have been increasing throughout South Carolina in recent years. Reduced down payment jumbo loans in Charleston have expanded as a result. Buyers that plan to finance high-cost homes have more options thanks to a robust housing market. In this post, we will detail all the down payment, loan amount and credit requirements needed to get approved.
Applicants that have questions should contact us by calling the number above, or just submit the Quick Contact form on this page – 7 days a week.
First Some Background on Loan Limits
Conforming loan limits in SC are currently set to $647,200, so any amount that goes above this would be classified as a Jumbo loan. FHA loan limits are set to $420,680 in most of SC, with the exception of Charleston, Beaufort, Berkeley, Dorchester and Jasper County where the limits are as high as $473,800.
As for Jumbo loans, the mortgage limits are determined based on the down payment amount and credit profile of the applicant. PMI is not required for all programs
- 95% Financing: Current limit of $2,000,000 (700 credit)
- 90% Financing: Current limit of $3,000,000 (700 credit)
- 85% Financing: Current limit of $3,500,000 (720 credit)
- 80% Financing: Current limits 3.5mil + (720 credit)
Note: Borrowers with lower loan amounts and higher down payment may have options to still get approved. Example: A borrower has a 10% down payment, but the loan amount will be less than $1,000,000. In this case, the borrower could have options with a 660+ score.
Jumbo Requirments For Approval
Similar to other loan programs, Jumbo loans have certain restrictions on the applicants and property types.
- All of 5%, 10%, and 15% options require the property is owner-occupied primary or second homes. Rental investment homes are eligible with 20% min.
- Single Family, townhomes and most condos are eligible. Homebuyers seeking financing to purchase land/lot and build a home are not eligible. *See special construction loans here.
- Buyers will need to properly document their income, and assets required for loan approval. Borrowers that are self-employed should have a minimum of two years’ tax returns.
- All jumbo loan programs will require a certain amount of savings or “reserves” after closing. This is the amount of liquid or non-liquid (401K, IRA) savings the buyer has after down payment and closing costs are paid. For example, new mortgage payment with taxes and insurance come to $5,500 per month. If the program requires 6 months of reserves, the borrower should have $33,000. In general, loans below 1.5mil will require 3-6 months reserves. Higher loan amounts will require 9+ months.
- All standard fix rate and ARM term choices are available with principal and interest payments.
- First time home buyers are eligible for the programs above.
- Special options are available to qualified Veterans. Learn more about VA high balance jumbo loans here.
- In addition to purchase loans, the options above are available for rate-term refinance transactions. Cash-out refinance is also available, but only at reduced loan to values.
Please contact us today to learn more about any of the programs mentioned.