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Down Payment Requirements on Jumbo Loans
How much are the down payment requirements on jumbo loans?
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5 Replies
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What are mortgage rates on jumbo mortgages versus traditional conforming home loans?
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Can you qualify for jumbo loans with bad credit?
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Can you qualify for jumbo loans with bad credit?
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Can you qualify for jumbo loans with bad credit?
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Down Payment Requirements for Traditional and Non-QM Jumbo Loans
Traditional Jumbo Loans
Down Payment Norms: A 20% down payment is a standard requirement in most cases of Jumbo loans. Some lenders may allow a down payment of less than 20%, such as 10% or 15%, even though these loans typically attract stricter credit ratings and higher interest rates.
Credit Score Considerations: On the other hand, borrowers with good credit may qualify for houses with lower down payments, but those with low scores may have to make a higher deposit.
Non-QM Jumbo Loans
Willingness to Pay Larger Deposits: Non-QM, meaning Qualified Mortgage non-jumbo loans, can allow borrowers more leeway in their down payment requirement. Based on the lender and the borrower, such ranges can fluctuate anywhere from 10% to 20% or even greater.
Interest-Only Options: Because Jumbo non-QM loans allow for interest-only payments, down payments may be structured differently.
Credit and Income Considerations: Some Non-QM loans may also consider Other Sources of Income, which will affect the down payment requirements.
Summary
Traditional Jumbo Loans: The usual 20% down payment is generally required, but there is still a 10-15% range for borrowers with good credit scores.
Non-QM Jumbo Loans: Offer more flexibility, accepting low down payments of 10% and higher than 20% based on lenders & borrower scenarios.
It is always great to verify with specific lenders to understand their exact criteria, as these are market—or case-specific and can vary widely.