Credit Score Requirements for Illinois Jumbo Mortgage Loans
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, partly because the more money that is borrowed the risk for the bank increases.
One of the factors to assess potential risk is a borrower’s credit score. 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.
As mentioned, Illinois jumbo loans have more stringent requirement for borrowers than most non-jumbo loans. 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 Type||Down Payment/Equity||Credit Score||Max Loan Amount|
|1 Unit, Single Family Residence||15%||720+||$1,500,000 (First & Second)|
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, but typically it will make it difficult to obtain jumbo financing if any of these situations have occurred recently.
If you have questions regarding rates for Illinois jumbo mortgage loans are any other qualifying requirement, please call United Home Loans today at (708) 531-8388.