Jumbo Loans Program
A buyer searching for an expensive property will need a special type of mortgage. This type of mortgage is called a jumbo loan. Jumbo loans split into two categories, conforming and non-conforming. Learn about jumbo loans in this article from our team of experts.
What are jumbo loans?
Jumbo loans are a type of mortgage meant for prospective home buyers who wish to purchase a luxury property. Luxury is determined by the home’s value and housing market. The conventional loan limit is $435,100 and $625,500 depending on the location of the home. Any property priced above the conventional loan limit will automatically become a jumbo loan. Therefore, a jumbo loan will begin above $453,100 and $625,500.
What is the difference between a conforming and non-conforming jumbo loan?
All jumbo loans are meant for luxury properties, no matter if it is a conforming jumbo loan or a non-conforming jumbo loan. In general, it is the mortgage lender who classifies a property eligible for a conforming or nonconforming jumbo loan based on the price of the property. However, a nonconforming jumbo loan is used when a property is valued well into the millions. In addition, a non-conforming jumbo loan requires the prospective borrower to go through an extensive special approval process to prove they can afford the mortgage.
How much of a down payment do I need for a jumbo loan?
Depending on the mortgage lender, jumbo loan programs require a down payment of either 5 %, 10% or 20%. Jumbo loan programs with a low down payment of 5% typically require borrowers to also have a good credit score. The most common down payment for a jumbo loan mortgage program is 10%. Despite the many jumbo loan programs with a 10% down payment, mortgage lenders may require prospective borrowers to meet other requirements, such as having high credit scores. Some mortgage lenders require a 20% down payment to qualify for a jumbo loan as if the prospective borrower was purchasing a home using a conventional loan.
What is Kingston Mortgage’s Jumbo Loan Program?
Kingston Mortgage’s jumbo loan program covers a wide price range. Our conforming jumbo loan program begins at $453,100 and $625,500 up to $2.5 million. Our non-conforming jumbo loan program begins at $2.5 million up to $15 million. In regards to down payments, Kingston Mortgage has an option for 5%, as long as the borrower has a good credit score. Eligible borrowers can place a 10% down payment on a non-conforming jumbo loan.