Jumbo mortgages help fill an important role for homebuyers seeking larger loan amounts beyond the 2023 conforming loan limits. Fairfax & Arlington County are considered high-cost counties, therefore the conforming mortgage limit for a 1-unit property is $1,089,300. The majority of other counties in Virginia and Maryland are limited to $726,200. So a Jumbo loan will be in order for buyers financing more than this amount.
The current median price for homes in the DC area, including the Arlington and Alexandria area is around $630,00-$660,000. That’s down slightly from this same time period last year, according to data from Realtor.com The housing market has continued to slow to a more normal pace nationwide over in recent months and most experts agree this healthy cooling trend should continue for most of 2023.
Today buyers tend to focus on mortgage rates, and recession fears when making financial decisions. However, at the same time mortgage rates have unexpectedly declined in recent months, and many believe the future of interest rates and home prices will be a driving factor this year.
Benefits of DC Area Jumbo Loans:
- Low down payment requirements: Qualified borrowers can get approved with just a 10% or even 5% down payment with no PMI. Please read the Jumbo Purchase page for the loan amount and LTV limits.
- Access to larger loan amounts – up to $4 million in financing available for approved buyers.
- Flexibility – DC area Jumbo loans offer a variety of terms and repayment options. Borrowers can pick from the common fixed-rate programs and also adjustable rate terms.
- Standard purchases include combo piggyback loan options for those financing greater than 80% loan to value.
- Refinance options include both rate-term and cash-out (limited to 90% LTV)
- Easy and fast application process 7 days a week – just submit the Quick Contact Form found on this page to get started.
Jumbo Qualifying Criteria:
Jumbo Qualifying Criteria: - Credit: Since jumbo loans carry greater risk for lenders and banks, getting approved will require sufficient income and a good credit record. Each mortgage company sets its own minimum credit score requirement for a jumbo loan. Additionally, these requirements do vary greatly depending on the down payment/LTV amount. In most cases, the buyer should have a 700+ credit score for a maximum of 95% financing. Lower credit scores are permitted for those home buyers with greater down payments of 10%-20%.
- Debt-to-income: These programs do have debt-to-income ratio (DTI) limits in place the same as many conventional loan programs. In most cases, borrowers will want to ensure their DTI stays below 45% – this should include all installment and revolving loan payments, plus the PITI housing expense.
- Documentation Required: Again, much the same as conventional loans, borrowers should be able to provide all necessary income and asset documentation. This would include the previous two years of tax returns and/or W2 statements. Along with the previous three months of bank or other asset statements. Bank statement qualifying options are also available for self-employed borrowers. This program calculates qualifying income based on 12-24 month bank deposits rather than traditional tax returns.
For borrowers looking for a larger loan amount, Jumbo loans can offer the perfect combination of low down payments and flexible terms. Just submit the Quick Contact Form today to get started, 7 days a week
