$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.