2016 New Jersey jumbo loan requirements

2016 New Jersey jumbo loan requirements

2016 FHA New Jersey jumbo loan requirements

New FHA guidelines requires only 3.5% down payment up to $625,500 for FHA jumbo loan with a minimum 580 credit score. Jumbo loans above $625,500 require 15% down payment up to 1 million dollar no mortgage insurance non-conforming loan and 20% down payment up to 1.5 million.

Up to $4 Million Loan Amounts

A jumbo loan is a mortgage that exceeds the mortgage loan limits that are not covered by Fannie Mae and Freddie Mac. Since these two agencies purchase the majority of residential mortgages from lenders and banks in the United States, they set the parameters in regard to how much money can be borrowed through a mortgage loan. Any mortgage loan amount above these parameters is considered to be a jumbo loan. Loans over the $417,000 limit set for conventional loans are considered jumbo loans.

While jumbo loan parameters may change from year to year and may be slightly modified in certain parts of the United States, these loans are currently reserved for those who need to borrow anywhere from $417,000 to $4,000,000. In parts of the United States where housing is typically more costly, however, the bottom end is set at $625,500.

New Jersey jumbo loan requirements Agency High Balance

Minimum credit score of 620, maximum loan amount of $625,500 and a maximum 90% Loan-to-Value.

Chapter 7 or 11 Bankruptcy waiting period 4 years from discharge to credit report date.

Extenuating Circumstances

Waiting period 2 years from discharge to credit report date.

The maximum Loan-to-Value the lesser of 90% Loan-to-Value or the maximum Loan-to-Value allowed for the program. Jumbo loans New Jersey.

Extenuating circumstances are considered isolated events that are beyond the borrower’s control that result in a sudden, significant and prolonged reduction in income or a large increase in the borrower’s financial obligations (e.g. death of a borrower, layoff, serious illness, divorce, etc.).

Acceptable documentation to support extenuating circumstances and that illustrate factors that contributed to the borrower’s inability to resolve the problem is required (e.g. copy of divorce decree, layoff notice, death certificate, medical bills, tax returns, property listing agreements, etc.). Additionally a letter of explanation from the borrower explaining the relevance of the documentation is required.

New Jersey jumbo loan requirements Fannie Mae condo approval.

Jumbo loans over $625,500

Jumbo loans over $625,500 require 15% down payment up to 1 million dollar no mortgage insurance and 20% down payment up to 1.5 million.

• Eligible loan terms include fixed terms (10, 15, 20, 25 and 30) and adjustable rates (5/1, 7/1, 10/1/)
• Interest Only on 30 year fixed or 10/1 ARM (10 year I/O period)
• Up to $4 million loan amounts
• 85% LTV to $1 million on condos
• 80% LTV to $1 million on second homes
• No mortgage insurance
• Up to 48/58 DTI (vs 35/45 at most lenders)
• Self-employed okay
• Income sources include W2, self-employed and liquid assets
• Liquid assets may be used for income qualification. May be used for both self-employed and W2 borrowers.
• No seasoning requirements for Cash Out
• Jr. Liens can be paid off as Rate/Term with 6 months seasoning on the lien
• Close in the name of an LLC or Corporation
• No Prepayment Penalty
• New Jersey jumbo loan requirements

What documentation will I need?

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