The jumbo loan options in St. Louis have continued to expand in 2020. Qualified buyers now have financing options unheard of just a few years ago. Any mortgage amount that exceeds the standard conforming loan limit is considered a “jumbo” loan. The max conforming loan limit for St. Louis and all surrounding counties is currently $510,400.
High balance jumbo loans have typically required 20% down payment on average. However, today approved buyers can finance homes with only 5% down. The exact down payment depends on many variables like the final loan amount, borrower credit profile, etc. Below will rundown the general requirements applicants should know before applying. If you have questions, please call the number below or just submit the Contact Form on this page.
St. Louis Loan Amount – Credit Requirments:
- 95% Financing – Cap at $2,000,000 loan amounts. Minimum 700 credit score required unless the loan amount exceeds $1.5m. In this case, min credit increases to 740.
- 90% Financing- Cap at $3,000,000 loan amount (single-family homes) $2 mil for condos. Min 720 credit when loan amount exceeds 2 mil. 680 credit needed for loan amounts below $2 mil.
- 85% Financing- Cap at $3,500,000 – Lower credit scores down to 660 eligible when the loan amount is below $2.5m. Higher loan amount amounts will require 740 credit.
General Jumbo Financing Requirments:
- All of the 5% down programs require the property (single family home, townhome, condo) to a full-time owner-occupied and/or second home. Rental/investment home purchases start at 20% down payment.
- All of the programs regardless of LTV require full income and asset documentation like standard conventional loans. This includes tax returns/W2, bank/asset statements, etc.
- Borrowers will need to document payment “reserves” This is the amount of liquid or non-liquid savings left over after down payment and closing costs are paid. The total number of reserves will depend on credit, loan amount, down payment, etc. Generally speaking, borrower financing loans below $1,000,000 should have 3-4 months payment reserves. Higher loan amount exceeding $2 mil can require 6-18+ months of reserves.
- Eligible properties include regular single family homes, townhomes and condominiums. Vacant land, lots, large acreage, farms, ranches or rehab homes are not permitted.
- The credit score requirements listed above for each program does not guarantee loan acceptance. All lenders and banks have additional requirements (waiting periods) related to borrowers with a past financial hardship regardless of credit score.
VA Jumbo loans – eligible Veterans that require higher loan amounts. Learn more about VA Jumbo loans here.
Special Short Sale programs – borrowers with past short sales also have jumbo financing options with greater down payments. Please see the latest options on the Jumbo Purchase page.
Jumbo Refinance – all the requirements listed above also apply to homeowners looking to refinance (rate/term) their current loan. Homeowners also have cash out refinance options available at lower loan-to-values. See all the Jumbo Refinance requirements.
Contact us today to learn more about any of the options listed above. Serving Jefferson, Lincoln, St. Charles, Franklin County. Metro East – Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe, and St. Clair