St. Louis Jumbo loan requirements have recently expanded allowing for more flexibility and reduced down payments. Approved home buyers now have financing options available with as little as 5% down payment. This is great for buyers that have strong, and stable income but lack the traditional 20% down payment required by many lenders and banks today. The best part is these programs do not require mortgage insurance and come in a variety of fix rate and adjustable rate plans.
Mortgages are considered “Jumbo” when the loan amount exceeds the conforming limit set by Fannie Mae or Freddie Mac. Conforming loan limits top out to $484,350 in Missouri and for most locations across the U.S., but some high-cost regions like California, Florida, etc are higher. Also known as a non-conforming mortgage, a jumbo loan can often have a slightly higher interest rate and may require a larger down payment and lower loan-to-value when compared to a conventional loan.
The loan process is pretty much the exact same as conventional loan types. Borrowers should be able to document their income and assets, along with a complete two-year employment history. Borrowers should have strong credit scores to support each program requirement.
St. Louis buyers looking to apply for a Jumbo loan can read all the requirements below, please contact Jumbo Mortgage Source with any questions by calling Ph: 800-962-0677. Buyers can also read more Jumbo Purchase loan details here.
- 5% down payment available up to $2,000,00 loan amounts.
- 10% down payment available up to $3,000,000.
- Credit scores must be a minimum of 700. No previous financial hardships in the last five years.
- Buyers should have payment reserves (additional savings) on top of their down payment and closing costs. The payment reserves can range from 3 month – 24 months depending on loan amount, down payment, credit, etc. Higher loan amounts over $2.0mil will require reserves of at least 9 months. Reserves are not required to be “liquid” as most retirements account do satisfy this requirement.
- Fixed rate and adjustable rate plans available for all Jumbo programs.
- Single loans and combo 80-15-5 (95%) or 80-10-10 (90%) mortgages available with no PMI.
- Same day loan pre-approvals and closings in as little as two weeks.
Please note – these programs only apply to primary home and vacation homes. Investment homes will require a higher down payment of 20 percent or more. Please visit Jumbo Mortgage Source today to learn more.
Serving all of MO including Kansas City, St. Louis, Springfield, Independence, Columbia, O’Fallon, St. Joseph, St. Charles, St. Peters, Joplin, Chesterfield, Jefferson City, Wentzville, Ballwin,