| Purpose | Purchase planning, not a loan offer |
|---|---|
| Service area | AL, SC, NC, GA, TN and FL |
| Property use | Disclose primary, second-home or investment use |
The down payment is only one part of the cash needed for a jumbo mortgage. Plan separately for closing costs, funds that must remain available after closing and the expenses of owning the home. A larger contribution reduces the mortgage but can leave less flexibility for a business, renovation or overlapping home sale.
Stonehaven Lending is a mortgage brokerage arranging high-value home financing in Alabama, South Carolina, North Carolina, Georgia, Tennessee and Florida. This guide explains how to organize a purchase review. It does not set a universal jumbo down payment or reserve requirement.
Start with four separate cash amounts
- Down payment: the purchase price less the mortgage and any other approved financing.
- Closing uses: fees, prepaid items and other amounts required for the transaction, after applicable credits and deposits.
- Required reserves: eligible assets the program requires you to retain, using that program’s definitions.
- Your personal buffer: money you want available for moving, repairs, business operations or other commitments.
Do not count the same dollars as both a down payment and funds remaining afterward. An account can appear on a statement without every dollar being immediately accessible or eligible for a particular purpose. Identify ownership, withdrawal restrictions and outstanding obligations before relying on it.
A hypothetical $1.5 million purchase
Assume a buyer has $500,000 of unrestricted cash and estimates $40,000 in closing uses, with no credits or previously paid deposits in this simplified example. A $300,000 down payment leaves a $1.2 million mortgage and $160,000 after closing. A $450,000 down payment leaves a $1.05 million mortgage and $10,000 after closing.
Neither structure is an approval. The example does not assume that either remaining balance satisfies a lender’s reserves or the buyer’s needs. It shows the trade-off to discuss before choosing a larger down payment. Compare the actual proposed payments and costs under identical assumptions, using our jumbo mortgage guide as the starting point.
If the buyer also wants $75,000 for planned improvements, the first scenario leaves $85,000 after setting that amount aside. The second scenario does not cover that goal. The improvements are a separate personal cash decision, not a claim that their cost can automatically be added to the mortgage.
Reserves are not simply another closing fee
A reserve requirement usually concerns eligible assets remaining after the transaction rather than an ordinary charge paid away at closing. Ask which accounts count, how they are valued, whether funds must be liquid and whether other financed properties change the calculation. The actual jumbo program determines the answer.
For context, Fannie Mae’s reserve guidance describes reserves for its agency loans. It is useful for understanding the concept, but its rules are not a universal jumbo standard. Ask for the requirement applicable to your proposal in writing.
Buying before another home sells
Identify whether your down payment depends on sale proceeds and whether you can carry both homes during an overlap. Show the expected sale-closing date, remaining mortgage, likely sale costs and any conditions still outstanding. An accepted offer on your current home is not money already received.
Use two purchase plans: the sale closes as expected, and the sale closes later. Discuss the difference before agreeing to a purchase deadline. Your agent or attorney should explain the contract’s financing and sale contingencies. Our high-value home purchase guide connects these dates with the financing review.
Compare offers on the same basis
A quote with fewer upfront costs may have a different rate or credit structure. A different down payment can also change the loan amount and terms, so compare matching scenarios first. The CFPB Loan Estimate explainer identifies the estimated payment, closing costs and cash to close so you can examine them separately.
Keep the property price, occupancy, requested amount, closing date and lock assumptions consistent. Then ask what changes if you contribute more or less. Do not compare one quote’s principal-and-interest payment with another quote’s total payment including taxes and insurance.
Questions about jumbo purchase cash
Is 20% down required for every jumbo mortgage?
There is no single rule across all jumbo programs. Ask for the actual down-payment and reserve requirements for the property, loan size, occupancy and borrower profile. This guide does not advertise a specific minimum.
Can business cash count toward my purchase?
It needs review. Explain who owns the account, whether you may withdraw the funds and what the withdrawal means for the business. If your income comes from that company, read the self-employed jumbo preparation guide before assuming that all business cash is available personally.
What should I send Stonehaven first?
Share the state, price range, approximate down payment, income type, planned use and timing. A summary is enough to begin. Keep statements, tax returns and account numbers out of the public inquiry form; we explain the appropriate document process next.