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CREDIT SCORE REQUIREMENTS TO QUALIFY FOR JUMBO LOANS
WHAT IS THE MINIMUM DOWN PAYMENT FOR A JUMBO MORTGAGE?
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A jumbo mortgage’s lowest down payment can change between lenders, the borrower’s money-related outline, and the loan program. Regardless, some rules should be followed:
Typical Minimum Down Payment:
Generally speaking, most creditors require at least 10-20% of the total amount as a down payment for a jumbo mortgage. The accurate percentage may often depend on factors such as credit score, debt-to-income ratio, and loan size.
Lower Down Payment Options:
Nevertheless, several banks can provide lower down payments for jumbo mortgages, like 5%- 10%. However, these usually involve stricter qualifications, higher interest rates, or extra insurance requirements.
Higher Down Payment Scenarios:
Suppose somebody has a weaker financial profile, e.g., a lower credit score or higher debt-to-income ratio. In that case, to compensate for their risk, lenders may ask for over 20% of funds as a security measure.
While shopping around, one should compare diverse lenders because requirements for jumbo loans may largely differ from one place to another.