PA home buyers now have the opportunity to finance higher-cost properties up to 95% loan to value. That’s right, only a 5% down payment is needed for buyers that meet the lender qualifying standards. Jumbo financing is often necessary for buyers financing loan amounts over the conventional loan limits cap of $766,550 in 2024 for most locations around the PA.
The exception to this would be Pike County, deemed high-cost and the conforming loan limit is $1,149,825.
In years past jumbo mortgages generally required a 20% down payment to get approved. That’s still the case with many banks, credit unions and lenders today. However, a select few are opening up more 90% and 95% financing options.
Pennsylvania Jumbo Qualifying Criteria:
- 95% Jumbo financing only applies to owner-occupied & second homes. The property must be a single-family, condo, or townhome. New construction spec homes are also permitted. No vacant land, or build on-site financing permitted.
- Buyers applying for the 5% down option must have a credit score of 700 or above. * Please note, that buyers who have experienced financial hardships in recent years may face additional requirements.
- Buyers need to fully document their income over the previous two years. Tax returns, etc.
- Buyers will need payment “reserves” after the down payment and closing costs are made. The exact amount will be determined based on the loan amount, credit and down payment. 3-9 months reserves are generally customary and can be satisfied from the buyer’s retirement accounts.
- 95% loan amount limit is $1,500,000
- 90% loan amount limit is $2,000,000
Read more about all the national Jumbo down payment requirements here.
Today’s jumbo mortgage options offer many benefits as follows:
- Lower down payments – only 5 percent required
- No monthly mortgage insurance costs
- Combo loan options like 80/15 or 80/10 along with single loan options ( depending on property state)
- 30-year fix, 15-year fix and adjustable rate terms available
- Flexible jumbo refinance options for homeowners that already have a Jumbo loan and want to refinance
Buyers can visit www.JumboMortgageSource.com for more information and all the latest program updates.
Serving Pennsylvania – Philadelphia, Pittsburgh, Allentown, Erie, Reading, Scranton, Bethlehem, Lancaster, Levittown, Harrisburg, Altoona, York, State College, Wilkes-Barre, Norristown, West Chester, Dunmore, Easton, Lansdale, Phoenixville, Emmaus, Lansdowne, Norristown, Yeadon