This is a thought that borrowers want to know but the truth is if you are fortunate enough to get ten-percent down using expanded conforming-guidelines in high-cost areas that should be something to be grateful of because a 5%-down jumbo loan is for the most part gone unless you find a niche portfolio program. This does exist in the Seattle metro area under the Doctor Loan program. Otherwise, you will be asked to present a minimum down payment of 20%.
Most jumbo loans are being offered by the big banks which include Bank of America, ING, U.S. Bank, Wells Fargo, Chase, PNC Bank, and MetLife Bank are the top names offering jumbo loans.
At times, the closing costs on a jumbo loan refinance may be expensive. Due to this reason, some lenders are offering a jumbo refinance whereby homeowners will not pay for closing costs and the rates are only higher than typical jumbo rates by “.125% “. Now that is attractive to say the least as you will save on costs and your new monthly payment is reduced.
In the years 2003 to 2007, lenders aggressively sought out customers with enticing offers for down payments of just 5 percent or absurdly zero down options when combined with a 2nd mortgage. But in today’s housing market, jumbo loans are now being offered for at least 20 percent with even stricter conditions.
Housing markets in 2011, have a conforming loan limit of $417,000 for a single-unit dwelling. A two-family (duplex) property has a loan limit ceiling of $533,850; a triple-unit dwelling is available at maximum of $645,300 and a four unit property at $801,950. Any loan above the limits for each property-type is deemed as non-conforming and if property has in excess of four-units is considered to be commercial and has its own regulations.
In Alaska and Hawaii, the maximum loan limit for a single unit is $625,000; a two unit, $800,775; a three unit, $967,775; and a four unit, $1,202,925.
For a borrower to get approved for a jumbo loan, a down payment should be made.
If borrowers want to be approved for a jumbo loan you more than likely have to satisfy the requirement that follow below:
» Making a minimum down payment of 20 percent of the loan you are seeking.
» A record of your income
» Your monthly mortgage payments will be 38 percent of your income before taxes.
» Your Credit Score needs to be above 720 (some lenders will allow 680)