Jumbo Loans

Jumbo Loans in Illinois – Credit Score Requirements

jumbo loans illinois

Searching for Jumbo Loans in Illinois? A “Jumbo” mortgage loan, also known as a non-conforming loan, is any loan that exceeds the 2022 conforming loan limit of $647,200. Due to the larger loan amount, Jumbo Loans are a bigger risk for banks. Therefore, Jumbo Loans typically come with more stringent qualifying requirements than non-jumbo loans.

Your Qualifying Credit Score

One of the factors to assess a borrower’s potential risk is their credit score. One common misconception in determining your credit score is that your highest credit score is your qualifying credit score. In reality, your qualifying credit score is the median score reported by the three bureaus. For example, let’s say your credit scores are: Equifax = 720, Experian = 740, Transunion = 760. The median score, and therefore your qualifying score, is 740.

Below are the typical credit score requirements for the purchase or rate/term refinance of a primary home:

Purchase and Rate/Term Refinance of Primary Residence

Property TypeMax. Loan AmountMax. LTVCredit Score
1-unit owner-occupied$650,00095%700

In addition to the minimum credit score requirements, other requirements related to your debt-to-income percentage and your home’s value to loan amount will have to be met to qualify.

Also, there are circumstances that will prevent you from being able to obtain Jumbo financing regardless of credit score. For 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. While there are limited exceptions that can be made for borrowers that fall into these categories, typically it will be difficult to obtain Jumbo financing if any of these situations have occurred recently.

If you have questions regarding rates and qualifying requirements for Jumbo Loans in Illinois, contact our team today.

*Limited to J15 & J30, 7/1, & 10/1 ARM’s only that require Mortgage Insurance (minimum LTV available is 80.01%). Must obtain Mortgage Insurance for these loan buckets structured as a single transaction. In some
cases, Mortgage Insurance guidelines may be more restrictive than Associated Bank guidelines.

✝Requires 12 months PITIA reserves and maximum debt to income ratio ratio of 43%