Indiana Jumbo Mortgage Loan Credit Guide
In Indiana, a “jumbo” mortgage loan, also known as a non-conforming loan, is any loan that exceeds $417,000. Jumbo loans typically have more stringent requirements than non-jumbo loans, because they are a larger credit risk for the bank to lend such a significant amount of money.
To determine the risk associated with these transactions, banks meticulously examine the credit scores 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 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|
In addition to the minimum score requirements, there are other things that will prevent you from being able to obtain jumbo financing regardless of credit score. 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.
There are limited exceptions that can be made for borrowers that fall into these categories, such as high net wealth, strong asset portfolio, etc. But typically, having past credit issues will make it difficult to obtain jumbo financing.
If you have questions regarding rates for Indiana jumbo mortgage loans or any other qualifying requirement, please call United Home Loans today.