Section 5: USDA High Balance (Jumbo) Loans
USDA High Balance Jumbo Loans
Many home buyers ask what the current jumbo loan limits are for their specific county and state. The fact is, jumbo loan programs do not have a uniform set loan limit like conventional Fannie Mae or Freddie Mac mortgages. However, with Jumbo loans, the loan caps are set by individual lenders and banks. Furthermore, the actual mortgage limit is based on many factors like the borrower’s credit profile, down payment amount, among other factors.
USDA High Balance Jumbo Loan Requirements
While service requirements remain the same, USDA high balance credit and income requirements are typically more stringent compared to a conforming FHA loan. Additionally, USDA high balance rates may differ slightly -- but every lender is different.
USDA High Balance Jumbo Loan Credit Score/Down Payment Requirements
Home Buyers with 5% Down:
- Loan amount limit through 2022 is $1,050,000
- Borrowers should have a minimum 680 credit score for 95% financing.
- First and Second mortgage (combo) loan structure, along with single loan structures available. Both with zero monthly mortgage insurance costs.
- Loan amount limit is $2,000,000
- Borrowers should have a min 680 credit for loan amounts below $1.5mil. Mortgages $1.5m-$2.0m will require a 720 score for 90% Jumbo financing.
- Just like above, multiple loan structure options with no PMI.
- Loan amount limits $3.5mil
- 740 credit required for loans over $2.5mil
- No PMI.
Home Buyers with 10% Down:
Home Buyers with 15% -20% Down:
Talk with an Orbit Home Loan specialist if you're considering a Jumbo Loan.
Are jumbo mortgage rates higher?
Traditionally, jumbo loans have slightly higher interest rates than those on conventional mortgage loans. But that’s not always the case. Indeed, on the day this was written (in mid–August 2021), Bankrate’s survey showed average jumbo rates actually lower than USDA loans. And we quickly found a big–name lender offering the exact same rate for both loans. As with all mortgage products, lenders assess your riskiness as a borrower when deciding the rate, they’ll offer you. And some are more forgiving than others. So, you should shop around between lenders to find your lowest mortgage rate and best deal, regardless of the type of loan you want.
USDA High Balance Jumbo Loans v. Traditional Jumbos
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Talk with an Orbit Home Loan specialist if you're considering a Jumbo Loan.