5% Down Payment Jumbo Mortgage Purchase in Pennsylvania

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Home buyers who wish to purchase a home and borrow more than the Pennsylvania Conventional Loan Limit of $484,350 are often faced with additional down payment requirements. Typically, 10% Down Payments or even 20% Down Payments are standard in the Jumbo Mortgage world.

Jumbo Mortgages are Available with just a 5% Down Payment

Even when home buyers have a substantial down payment available, they often do not want plunk this money down on a home. Outside of selling the house, funds tied up in a home as down payment can only be accessed later with an additional home equity loan or cash out refinance. This is not always cost effective. Minimizing down payment and letting this money perform in other segments of an individual portfolio often makes more sense for long term asset growth.

Key Points of the 5% Down Payment Jumbo Mortgage Purchase Program

  • Minimum credit score of 680

  • Maximum loan amount of 1.5 million

  • Maximum Debt to Income Ratio of 35% of Gross Verifiable Income

  • No mortgage insurance required for the 5% Down Payment Jumbo Mortgage

  • Single Family Residences only

  • Approved Warrantable Fannie Mae Condos are eligible

  • Second Appraisal not required

  • Chapter 7 Bankruptcy must be discharged at least 4 years

  • Chapter 13 Bankruptcy must be discharged at least 2 years

  • Multiple Bankruptcies not allowed

  • Foreclosures must be at least 7 years from previous Deed

  • Gift funds are allowed after Borrower contribution of at least 5%

  • US Citizens and documented Permanent Resident Aliens

Disclosure of terms as of 4/02/2019: Applicant credit score of 760; 540K sales price with a 513K loan amount on a 30 year fixed rate of 5.5% would result in a Principal and Interest Payment of $2913 and an APR of 5.664%. Terms and conditions will vary according to market conditions and your exact credit score.

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