Real Estate Talk Boston

Questions and answers for jumbo lending...


In today's lending environment, it seems as if a lot of consumers are not sure what the jumbo lending environment is right now. Often I get asked questions such as...what type of down payment is needed? what is the minimum FICO score for jumbo loans? Etc...
I am going to answer a few key questions that will hopefully paint a clearer picture for you of the jumbo loan market. Right now is not only a great time to buy in the conforming market but the jumbo as well as there are some great products and programs out there right now and rates are still REALLY low!

What kind of jumbo programs are available?

Jumbo lenders offer fixed, adjustable and interest only programs. You will find the most competitive rates with ARM products; however, with current rates you might want to consider a fixed product.

Is there a minimum credit score for jumbo financing?

Jumbo lenders require you have no less than a 700 credit score.

Do I have to put down 20%?

In some cases, you can borrow up to $1mil putting as little as 10% down. Everyone's scenario is different but I recommend reaching out to a mortgage professional to go over your options with you.
Are there restrictions on how I receive my income?

No. Acceptable forms of income include: self-employed, W2 employee, retirement, asset based or asset generated income.

It’s important to know in the land of mortgages, income can only be used if you have paid taxes on said income. This means anything you have written-off on your federal tax returns is not considered income and will be deducted from your annual income. Watch those deductions!

How much will I need in savings?

You will need enough to cover your down payment, closing costs and a minimum of six months reserves.

Reserve formula

One Month Reserve = One Mortgage Payment (this includes taxes, insurance and any assessments)

Are there property type limitations?

You can purchase up to a 4 unit multi-family home – anything over four units is considered commercial and in a different financing ballpark altogether.

Just know, for loan amounts over one million you will be required to pay for two appraisal inspections.

For today’s jumbo rates or more information on jumbo financing, feel free to contact our team the Devin Group at Guaranteed Rates for market leading rates and programs!

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