Are you looking for a luxury home in Tennessee? You might want to think about a jumbo mortgage loan. Jumbo loans are for homes that cost more than the usual loan limits. In Tennessee, you can borrow up to $766,550 for most counties1. But in places like Davidson, Cheatham, and Williamson counties, you can borrow up to $856,5001.
This lets you finance your dream home without the limits of a regular loan. Jumbo mortgages are great for buying luxury homes or homes in sought-after areas in the Tennessee housing market. They can help you buy a property in Nashville, Knoxville, Memphis, or Chattanooga.
Key Takeaways
- Jumbo loan limits in Tennessee range from $766,550 to $856,500 depending on the county.
- Jumbo loans allow you to finance high-value properties that exceed conventional loan limits.
- Tennessee ranks 18th in the country for jumbo mortgage origination, with $7.8 billion in volume2.
- Jumbo loan requirements typically include a minimum 680 credit score, 20% down payment, and 43% debt-to-income ratio1.
- Lenders like Huntington Bank, Keybank, Fifth Third Bank, and Flagstar Bank offer jumbo loan products in Tennessee2.
Understanding Jumbo Loans in Tennessee
Looking to buy a luxury home or a high-value property in Tennessee? A jumbo loan might be what you need. A jumbo loan is a mortgage for homes that are more expensive than the usual limits set by Fannie Mae and Freddie Mac. In most Tennessee counties, the limit for jumbo loans is $766,550. But in places like Davidson and Cheatham, it can go up to $856,5003.
What is a Jumbo Loan?
A jumbo loan helps finance luxury homes or high-value properties. It’s for when the home’s value is more than what Fannie Mae and Freddie Mac can guarantee4.
Differences Between Jumbo and Conventional Loans
Jumbo and conventional loans differ in several ways in Tennessee. These include the loan amount, down payment needs, credit score, and debt-to-income ratio. Jumbo loans usually need a higher credit score, a bigger down payment, and a lower debt-to-income ratio than conventional loans34.
Jumbo loan borrowers in Tennessee must put down at least 20%. But, some lenders might accept less, and you’ll likely need to pay private mortgage insurance (PMI)3. Also, you’ll need a credit score of at least 680, possibly 700 or higher, and a debt-to-income ratio of 45% or less3.
Jumbo Loan Limits in Tennessee
In Tennessee, jumbo loans are key for many buyers, especially in areas like Nashville, Knoxville, Memphis, and Chattanooga5. The limits for jumbo loans vary by county, from $766,550 to $1,149,825 for 20246. Loans above these amounts are considered jumbo loans in Tennessee.
Tennessee has seen a big jump in jumbo mortgage activity. It ranked 18th in the country with $7.8 billion in jumbo mortgages5. To get a jumbo loan, you need a credit score of at least 700, a debt-to-income ratio under 43%, and a 10-20% down payment6. Some lenders also want you to have cash set aside for several months of mortgage payments6.
Jumbo loans are riskier for lenders than conforming loans because they can’t be sold to Fannie Mae and Freddie Mac6. But, jumbo loan rates are often lower than conforming loan rates. They depend on your credit score6. For those buying expensive properties in Tennessee, knowing about jumbo loans is key to getting the financing you need.
Qualifying for a Jumbo Loan in Tennessee
To get a jumbo loan in Tennessee, you must meet certain criteria. You’ll need a credit score of at least 6807. Also, you should have a down payment of 20% or more7. And, your debt-to-income ratio should be under 43%7. But, some lenders might accept a lower score or down payment for a primary home7.
Credit Score Requirements
In Tennessee, you need a solid credit score for a jumbo loan. Most lenders want a score of 6807 or higher. Some might even accept 6208. A good credit score can lead to better loan terms and rates.
Down Payment and Reserves
You’ll usually need a big down payment for a jumbo loan in Tennessee. Aim for 20% or more of the home’s price7. Some lenders might accept less for primary homes. Also, you’ll need cash reserves, usually 6-12 months of mortgage payments7.
Debt-to-Income Ratio
Lenders look at your debt-to-income ratio for jumbo loans in Tennessee. The limit is usually 43%, but some might accept up to 50% for top borrowers7. A lower ratio can boost your chances of getting a jumbo loan.
Meeting these criteria can help you get a jumbo loan for a pricey property in Tennessee. Knowing what lenders want and working with a lender can make your application more likely to succeed78.
Types of Jumbo Loans in Tennessee
If you want to buy a high-value property in Tennessee, jumbo loans might be right for you. These loans come in adjustable-rate and fixed-rate types. Adjustable-rate jumbo loans have a 10-year fixed period5. Fixed-rate jumbo loans are available for 15-, 20-, and 30-year terms5. The loan types you can get depend on the lender you choose, but you can usually find one that fits your needs.
In the Nashville area, the 2024 conforming loan limit is $943,000 for one-unit properties5. Jumbo loans in this area can go up to $1,500,000 with a 5% down payment, $3,000,000 with a 10% down payment, and $3,500,000 with a 15% down payment5. You’ll need a credit score of 680 or higher for 95% financing, 700 or higher for loans over $2 million, and 720 or higher for loans over $2.5 million5.
Jumbo loan programs in Tennessee offer fixed and adjustable-rate options. They also have debt-to-income ratio limits of 42-48%5. You’ll need to save up for mortgage payments, usually 3 months for smaller loans and 6+ months for bigger loans5. You’ll also need to show proof of income and assets to get a jumbo loan5.
Whether you prefer an adjustable-rate or fixed-rate jumbo loan, Tennessee offers many options for financing your dream home. Knowing the specific requirements and limits for these loans can help you make a smart choice for your finances95.
Jumbo Loan Lenders in Tennessee
Looking for a jumbo loan in Tennessee? You have many trusted lenders to choose from. Huntington Bank, one of the biggest banks in the U.S., offers competitive jumbo loans. They have options with no money down and can lend up to $2.5 million10.
Keybank is another top choice, lending up to $3.5 million with just 10% down. They don’t require private mortgage insurance10. Fifth Third Bank, a leading consumer bank, also offers jumbo loans up to $3 million10. Flagstar Bank and SoFi provide jumbo mortgage options for Tennessee buyers too.
Jumbo loans in Tennessee can fund primary homes, vacation homes, or investment properties10. But, they go through stricter checks due to the 2014 Qualified Mortgage rules. Lenders ask for detailed documents to approve these loans10.
To get a jumbo loan, you’ll need a good credit score, usually between 660 and 72010. Some Tennessee lenders might want a score of 680 or 700 for certain loans5. Your debt-to-income ratio should be under 43% of your monthly income, or less if your down payment is under 20%10.
There’s another way to avoid jumbo loans in Tennessee. You can combine a first and second mortgage to meet your needs10. This is smart in high-cost areas, where the loan limit is up to $1,149,825105.
Conclusion
Jumbo loans in Tennessee are key for those wanting to buy expensive homes. They help buyers get loans for properties worth more than the usual loan limits. In Tennessee, these limits range from $766,550 to $856,50011. This means people can buy their dream homes in the state’s pricier areas12.
Knowing how jumbo loans work helps buyers get the right mortgage for their high-value homes. With higher conventional loan limits in 202312 and various FHA loan options13, Tennessee has many financing choices. These options are great for those looking for luxury home loans and jumbo mortgages.
For both first-time buyers and seasoned investors, understanding Jumbo Loan Limits in Tennessee and other related limits is crucial. It’s the key to getting a Jumbo Mortgage Tennessee and making your homeownership dream come true in the Volunteer State. Knowing the jumbo loan limits in Tennessee will help you determine the maximum amount you can borrow to purchase a high-value property. These limits vary by county and are influenced by factors such as property location and prevailing market conditions. By staying informed about jumbo loan limits, you can make sound financial decisions and optimize your homebuying experience in Tennessee.
Source Links
- Tennessee Jumbo Loan Rates | Moreira Team Mortgage
- 5 Best Jumbo Loans in Tennessee
- Jumbo Home Loans in Tennessee | Dash Home Loans
- What is a Jumbo Loan in Tennessee in 2024?
- Nashville-Davidson County Jumbo Home Financing
- Jumbo Loan Limits By State | Bankrate
- What is a Jumbo Loan? 8 Things Homebuyers Should Know
- Jumbo Loans: What You Need to Know – NerdWallet
- What Are the Jumbo Loan Limits for 2024?
- Mortgage Investors Group
- What Is A Jumbo Loan? | Bankrate
- Conventional Loan Limits Tennessee 2023
- 2024 FHA Loan Limits in Tennessee | LendingTree