Jumbo loans do not conform to Fannie Mae and Freddie Mac conforming guidelines due to mortgages being larger than the conforming limits. Normally, lenders require 20% down payment, but we do not.
- Borrower contribution minimum of 5%.
- If appraiser notes a decline market, reduce the loan to value by 5%.
- Property types include single family (detached, semi attached, attached), PUD (detached, attached), and warrantable condominiums (detached, attached).
- Occupancy allows 1-4 unit primary residence (First Time Homebuyer is limited to a primary residence), 1 unit second home, and 1 unit investment.
- The minimum loan amount is the conforming limit (conventional loan amount limit)+$1.
- For jumbo loans, lenders set their own lending guidelines. In order to get the lowest rate possible, borrowers should put as much as a down payment as possible.