JUMBO LOAN PROGRAMS + ASSET DEPLETION

$626,000 – $2M

 

Jumbo Loans 20% Down

instant equity with the lowest payment


Jumbo Loans are loans that exceed the conforming jumbo limits. While many underwriting guidelines are based on those set forth by Fannie Mae and Freddie Mac, these loans are not governed by these entities. The loan limits for jumbo lending are not set by any governing body and typically range from $625,501 to around $1,500,000 or $2,000,000. Streamline processes have been established for these loans. However, additional requirements are often applied for underwriting and approval. For example, the lender may ask for an additional appraisal and/or impose slightly lower loan to value ratio restriction. While Jumbo mortgages are also available with long term fixed interest rates, adjustable rate products for this option are more common.


Loan Programs Available:

Fixed Rate Product: 30 Year / 25 Year / 20 Year / 15 Year / 10 Year. Fixed-Rate Mortgage (FRM) is a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float”. As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.

ARM (Adjustable Rate Mortgage): 10/1, 7/1, 5/1, and 3/1 are most prevalent. A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.[1] The loan may be offered at the lender’s standard variable rate/base rate.

Mortgage Insurance (MI) will not be required. Mortgage insurance (also known as mortgage guarantee) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.


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$626,000 – $2M

 

Jumbo Loans 10% Down

instant equity with the lower payment


Jumbo Loans are loans that exceed the conforming jumbo limits. While many underwriting guidelines are based on those set forth by Fannie Mae and Freddie Mac, these loans are not governed by these entities. The loan limits for jumbo lending are not set by any governing body and typically range from $625,501 to around $1,500,000 or $2,000,000. Streamline processes have been established for these loans. However, additional requirements are often applied for underwriting and approval. For example, the lender may ask for an additional appraisal and/or impose slightly lower loan to value ratio restriction. While Jumbo mortgages are also available with long term fixed interest rates, adjustable rate products for this option are more common.


Loan Programs Available:

80-10-10 Mortgages

This is an option that requires you to take out a second loan at the same time as your mortgage, known as the “piggyback” loan. This is done so that the money from the second loan can be used to help you satisfy the necessary 20% down payment for a typical mortgage. The numbers “80”, “10” and “10” come from the following breakdown: 80% is your mortgage, 10% is the second loan, and the second 10% is your down payment before it is combined with the money from the second loan. 

As you are taking out a second loan, you will have to pay two loans each month if approved. The main benefit is that you will be able to buy your home by funding only half of the down payment out of pocket and avoid PMI, which can be expensive.

The benefits of this loan program is that is allows the borrower to put less money down. The disadvantage is that the borrower must have the financials to support larger payments.

 


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$626,000 – $2M

 

Jumbo Loans Interest Only

lowest payment with cash flow retention


Jumbo Loans are loans that exceed the conforming jumbo limits. While many underwriting guidelines are based on those set forth by Fannie Mae and Freddie Mac, these loans are not governed by these entities. The loan limits for jumbo lending are not set by any governing body and typically range from $625,501 to around $1,500,000 or $2,000,000. Streamline processes have been established for these loans. However, additional requirements are often applied for underwriting and approval. For example, the lender may ask for an additional appraisal and/or impose slightly lower loan to value ratio restriction. While Jumbo mortgages are also available with long term fixed interest rates, adjustable rate products for this option are more common.


Loan Programs Available:

Interest Only Mortgages allow you the flexibility of paying only the interest on your mortgage for a selected number of years. While this results in a lower monthly payment, it does not reduce the principal balance of the loan as it would with an amortizing loan. Because larger portions of the interest due over the life of an amortizing loan (see amortizing loan) is paid in the earlier years, the interest only loan is generally a better option for homeowners who have seasonal income or who don’t expect to stay in their home for more than 5 to 7 years.

Amortization is the process by which loan principal decreases over the life of a loan. With each mortgage payment that is made, a portion of the payment is applied towards reducing the principal, and another portion of the payment is applied towards paying the interest on the loan. In the early years, a larger portion of each payment is devoted to interest and a smaller contribution is made toward the principal. This reverses as the loan matures, with larger portions of the payments going toward paying down the principal and the smaller being applied to interest. This results in the majority of the interest that is due over the life of the loan to be paid in the early years.

Whether you are a first time home buyer, a growing family or a real estate investor, it is important to work with a loan officer that realizes everyone’s needs are different. Delawari Financial prides itself on building strong personal relationships and educating their clients before they decide to commit to a home loan.


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Asset Depletion

self-employed or have significant liquid Assets


Loan Programs Available:

Asset Depletion Qualification is simply an Underwriter’s tool to apply more qualifying income by calculating a return on the borrower’s “liquidable” assets. An Asset Depletion Loan is a great program for helping home buyers qualify for a loan despite not having “enough” verified income on their tax returns.

Asset Depletion qualifying is where the lender will derive an income from the borrowers assets and add it to their verifiable income from their tax returns.

Below is a list of assests that are acceptable for an Asset Depletion.

  • Cash or cash equivalent
  • Money market accounts, savings accounts, checking accounts
  • Trust Funds
  • Investment portfolios: stocks, bonds, mutual funds, etc.
  • Retirement accounts (but only if the borrower is of retirement age: 62)

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