Jumbo Loan Down Payment Requirements
Great news! The jumbo loan down payment requirements have been changed recently. You will still need to do some paperwork in the approval process. The lenders will want to see your taxes for the last few years. But, the amount of your down payment could be significantly less.
Credit Score – Jumbo Loan Down Payment Requirements
Jumbo loans are offered to those who are looking at luxury priced homes, over the conforming loan limits. The face value of these loans is higher than most mortgages. It makes sense that the jumbo loan down payment requirements, and your credit score may need to be higher, too.
Expect to need a credit score of at least 680, but some lenders may ask for 700 or even 720. The higher your credit score, the lower the jumbo loan down payment requirements you will face.
The lender will want to see your payment history for your previous mortgage over the past few years. They also will want details about any lines of credit you have.
Debt to Income Ratio Affects Jumbo Loan Down Payment Requirements
Your debt to income ratio will affect the jumbo loan down payment requirements from the lender. The lower your DTI, the more positively you are considered by lenders.
The minimum DTI is 43%. This is the same figure used for conforming mortgages. For jumbo loans often lenders are looking for a DTI closer to 38%, or even as low as 36%. Don’t worry though, this is something that we specialize in at Good to Go Mortgages. Simply prequalify for your jumbo loan down payment requirements.
The jumbo loan down payment requirements vary depending on your situation. Those who are self-employed might need to provide tax returns for several years. A history of ongoing high income levels is important to determine the exact jumbo loan down payment requirements.
How Cash Reserves Affect Jumbo Loan Down Payment Requirements
You will want to demonstrate you have cash reserves, in order to minimize the jumbo loan down payment requirements. Lenders ask for a minimum of 6 months of payments, and some ask for a year’s worth in reserve. This doesn’t all have to be sitting in your savings account. Most lenders are fine with up to half of your cash reserves being your retirement funds.
Down Payment Amounts
Jumbo Loan Down Payment Requirements vary depending on the value of the house, your personal financial situation, and the lender. Historically, a 20% or even a 30% down payment was required. That is no longer the case.
You can now qualify for Jumbo Loan Down Payment Requirements for as little as 10% of the purchase price.
Prequalify now to find out the Jumbo Loan Down Payment Requirements for your unique situation.