Credit Score Guidelines for Wisconsin Jumbo Loans
For Wisconsin borrowers, a “jumbo” mortgage loan, also known as a non-conforming loan, is any loan that exceeds $417,000. Jumbo loans typically have more rigorous guidelines and requirements than non-jumbo loans, because the bank is taking more of a risk by lending a larger amount of money.
In an effort to determine if a borrower is qualified and a low risk, banks methodically examine the credit report of the borrowers. One common misconception in determining your credit score is that your highest credit score may not be your qualifying credit score. Your qualifying credit score is the median score reported by the three bureaus. For example, if your credit scores were: Equifax = 720, Experian = 740, Transunion = 760; 740 would be your qualifying score, as it is the median score.
Below are the typical credit score requirements for the purchase or rate/term refinance of a primary home in Wisconsin with jumbo mortgage financing:
Purchase and Rate/Term Refinance of Primary Residence
| Property Type||Down Payment/Equity ||Credit Score || Max Loan Amount|
| || 10%|| 740+|| $750,000|
| 1 Unit, Single Family Residence|| 15%|| 720+|| $1,500,000 (First & Second)|
| || 20%|| 720+|| $1,000,000|
| || 20%|| 680+|| $900,000|
| || 25%|| 720+|| $1,500,000|
| || 25%|| 660+|| $900,000|
| || 30%|| 720+|| $2,000,000|
Even if you meet the minimum score requirements, there are other factors that will prevent you from being able to obtain jumbo mortgage financing in Wisconsin. As an example, if you have declared bankruptcy, had a foreclosure or had a deed in lieu of foreclosure within the last seven years you will be ineligible for jumbo financing.
For some borrowers, exceptions can be made but they are very limited. For example, if a borrower has high net wealth, strong asset portfolio, etc., an exception may be made. But typically, having past credit issues will make it difficult to obtain jumbo financing.
United Home Loans offers Wisconsin jumbo mortgage loans to $2,000,000, and in some cases higher.
Check out our rates below and call us with any mortgage related questions at (708) 531-8388
Illinois Mortgage Rates
IL 30 Year Jumbo mortgage as of August 6, 2013 4.375%/4.390 APR
IL 15 Year Jumbo mortgage as of August 6, 2013 3.625%/3.652 APR
IL 5/1 ARM Jumbo mortgage as of August 6, 2013 2.875%/2.754 APR
IL 7/1 ARM Jumbo mortgage as of August 6, 2013 3.250%/2.949 APR
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for APR assumptions and more IL mortgage rates