⚖️ Jumbo vs. Conventional Loans: Key Differences That Matter
Big home, smart strategy — yes, you can buy with less cash upfront.
If you’re shopping in a high-cost market, you may have heard:
👉 “You’ll need 20% or more down for a jumbo loan.”
✅ Good news: That’s not always true.
Today’s jumbo loan programs are more flexible than ever — and many buyers are qualifying with 10%, 15%, or even 5% down, depending on their credit, income, and goals.
Here’s how to get a jumbo loan with less than 20 percent down — and how PRMI helps you build a smart strategy that balances leverage with long-term stability.
🧾 Why People Think You Need 20%+
🔑 Understanding the Jumbo Loan with Less Than 20 Percent Down
Jumbo loans:
- Aren’t backed by Fannie Mae or Freddie Mac
- Represent larger loan amounts = more risk to the lender
- Often come with stricter underwriting and higher reserve requirements
That’s why traditional lenders used to require 20%+ down — but times have changed.
✅ Current Low-Down Jumbo Loan Options
At PRMI, we offer jumbo loan programs with:
- 10% down up to $1.5M (with 700+ credit)
- 5% down in select programs (strong credit, high income, full doc)
- 15% down on purchases over $2M
- No mortgage insurance (PMI) on many jumbo loans
- Fixed and ARM rate options for flexibility and savings
📘 Each scenario is custom-built — and we help you structure it for your comfort zone and financial profile.
💡 How to Qualify With Less Than 20% Down
Here’s what lenders look for:
1. Strong Credit
- 700+ FICO is ideal
- Higher scores = more flexibility and better pricing
2. Low Debt-to-Income (DTI) Ratio
- Usually under 43%
- Your income needs to support the mortgage comfortably
3. Reserves
- Most programs require 6–12 months of mortgage payments in reserves
- Savings, 401(k), and investment accounts can count
4. Full Documentation
- Tax returns, pay stubs, W-2s, or bank statements
- Clean, well-documented files make approval faster and smoother
🏘️ Example: Buying With 10% Down
- Purchase price: $1.3M
- 10% down: $130,000
- Loan amount: $1.17M → qualifies as a jumbo loan
✅ You now own a $1.3M home with no monthly mortgage insurance
You keep more cash in hand for furniture, reserves, or investing elsewhere.
🏢 Why PRMI?
We help buyers:
- Qualify for jumbo financing with less than 20% down
- Compare down payment scenarios side-by-side
- Avoid PMI when possible and structure tax-efficient financing
- Close with clarity, speed, and peace of mind
You don’t need to be cash-heavy to buy smart — you just need the right lender.
👇 Want to Buy a High-Value Home Without Putting 20% Down?
Let’s explore your credit, reserves, and income — and design a jumbo strategy that gets you in without draining your savings.