2018 Jumbo Loan Requirements

2018 will be a great time to take advantage of rising inventory and great low down payment options.  Here are a few things to think about.

  • Good Credit – Good credit is required, which should be at a minimum 680 or higher for the 5% down payment option. Buyers with 10% down payment must also have a credit score above 661.
  • Payment Reserves – Most jumbo loan programs require you to have a certain amount of reserves. Reserves are the amount of assets you have available after your mortgage has closed and you have paid for your down payment and closing costs. As a general rule, one month of reserves should equal one mortgage payment, includes taxes, insurance, and any homeowners assessments. Jumbo loan reserve requirements may vary from 6 months of reserves to 24 months depending on the loan program, loan amount, credit score and overall buyer quality.
  • Documentation – Borrowers will need to document income and assets in order to qualify for a jumbo loan. This includes paystubs, tax returns and/or W’2, plus bank statements to demonstrate sufficient assets.
  • Property Use – Lower down payment program on jumbo loans are allowed on primary occupancy home. Second homes and vacation home require 10% down payment. The subject property must be a single-family home, townhome or approved condo.
  • Jumbo Loan Amounts –  Jumbo loan amounts will depending on your county location.  Some counties start at $453,100 and others start at $679,651, check with us to find out.
  • Avoid Mortgage Insurance – The Jumbo programs above are available in a variety of fixed and adjustable rate terms. Adjustable rate mortgages often offer more attractive rates compared to jumbo fixed rate programs, making it one of the most common jumbo loan types. Some loan programs do not have mortgage insurance and using a combo loan is also a popular way to structure a loan to avoid mortgage insurance.