jumbi mortgage Credit Requirements, Property Eligibility and Jumbo Loan Down in The District Of Columbia
If you are thinking about purchasing a house that will cost you $500,000 or more you are probably looking at a jumbi mortgage in The District Of Columbia, and pondering the jumbo loan down payment options. If you don’t have the half mil sitting in the bank in cash, you still have some solid options for how to proceed.
Credit Requirements and Down Payment for Jumbo Loan in The District Of Columbia
The credit requirements are significantly stricter for these larger value loans. There is a higher risk associated with carrying a jumbo loan for the creditor because they are not guaranteed by Freddie Mac or Fannie Mae. That is why the jumbo loan down payment question is so key.
For approval in The District Of Columbia you will:
- Have an an good credit score although some lenders work with scores over 580.
- Have a low DTI (debt to income ratio), absolutely 43% or lower, the closer you are to 36% the better.
- Have cash reserves available to cover several your payments, in addition to your jumbo loan down payment. This cash can be a combination of liquid cash from your savings or checking accounts, plus money from your retirement savings or money in your business.
The details of your loan will depend on the value of the house you are purchasing, the amount of your jumbo loan down payment, and your financial situation.
There are restrictions on the property eligibility, regardless of the amount of the jumbo loan down payment. Jumbo loans can be used for financing several kinds of properties.
- High-cost Area Single Family Residences
- 1 to 4 Unit Single Family Dwellings
- Most Counties Allow Investment Property
- Many Counties and Lenders Allow a Second Home
- Short Sales or Foreclosed Homes May have Eligibility Limits
- Condominiums may have specific limitations with different jumbo loan down payment requirements.
A Down Payment on Jumbo Loans – Options
- The District Of Columbia Single loan and 80-20, 80-15 and 80-10 combo “piggyback” programs
- Fast and Easy Application Process
- Jumbo 95% loan-to-value – Jumbo Loans to $2,000,000 in The District Of Columbia
- Jumbo 90% loan-to-value – Jumbo Loans to $3,000,000 in The District Of Columbia
- Long-Term Loans (Up to 40 Years) in The District Of Columbia
- Flexible Jumbo Down Payments – As little as 5% down specialist in The District Of Columbia
Recently, minimum jumbo loan down payment amounts have dropped to 10 to 15%. Since interest rates are lower, payments are lower, making the higher loan values more affordable for home purchasers.
When you are looking to purchase a home over $500,000, you will need to consider the options for your jumbo loan down payment. Maintaining adequate cash reserves, while supporting the purchase of your new home is what a lower down payment for jumbo loan figure can do.
Your situation is unique. If you have already found that home, or if you are just at the beginning stages of searching for real estate, now is the time to call an expert like Good To Go Mortgage.
If you don’t have the half mil sitting in the bank in cash, you still have some solid options for how to proceed with jumbi mortgage in The District Of Columbia