90% LTV Jumbo Loans With No Private Mortgage Insurance Requirement
This Article Is About 90% LTV Jumbo Loans With No Private Mortgage Insurance Requirement
Jumbo mortgages are home loans with a loan balance higher than the conforming loan limit of $548,250. Lenders consider jumbo loans higher-risk loans. This is because it is difficult for higher-end homes to sell in the event the property goes into foreclosure and needs liquidation. Homes that can be financed with government and/or conventional loans often have buyers within a short period of time after the finalization of the housing event. However, larger higher-priced homes often remain in the market for months if not years. The longer it takes for a property to sell after foreclosure means a higher risk level for the lender. This is why lenders of jumbo loans require tougher lending requirements including substantial down payments.
Gustan Cho Associates offers multiple jumbo loan programs. This includes traditional jumbo and non-QM jumbo mortgages. Gustan Cho Associates is proud to introduce traditional 90% LTV Jumbo Loans for homebuyers of higher-end homes. This jumbo loan program is a traditional mortgage program and not a jumbo non-QM loan program. This new traditional jumbo loan program allows up to a 50% debt to income ratio. Borrowers with credit scores down to 660 FICO are eligible to qualify for 90% LTV Jumbo Loans.
Gustan Cho Associates now offers Jumbo Loans With a 10% Down Payment With No Mortgage Insurance. We also offer Non-QM Jumbo Loans with borrowers down to 500 credit scores. Jumbo Loans are portfolio loans for mortgage loan balances that are above $548,250.
Jumbo Mortgages Explained
Any mortgage loan with a loan balance higher than the conforming loan limit of $548,250 is called a Jumbo loan. Jumbo loans are also called non-conforming loans since they do not meet the maximum $548,250 conforming loan limit set by Fannie Mae and Freddie Mac. In general, traditional lenders of jumbo loans require borrowers with outstanding credit scores (over 700 FICO) and lower debt to income ratios. Gustan Cho Associates now has a 90% LTV Jumbo Loan program for borrowers with credit scores down to 660 FICO and up to a 50% debt to income ratio.
Jumbo Loans normally have higher mortgage rates than regular conventional loans. Jumbo mortgage rates are higher than conventional loans. Most lenders require a 75% loan to value where they require borrowers to put down a 25% down payment. There are other lenders that will bump the loan to value to 80% LTV on Jumbo Loans. The higher the loan to value, the higher the mortgage rate. This is because borrowers have less skin in the game. Homebuyers and homeowners of high-end homes can now qualify for 90% LTV Jumbo Loans With No Private Mortgage Insurance.
90% LTV Jumbo Loans For Self Employed Borrowers
90% LTV Jumbo Loans is now available by lenders with lender-paid mortgage insurance. There are no mortgage insurance premium requirements for borrowers. It is called LPMI, which stands for Lender Paid Mortgage Insurance. Mortgage rates for Lender Paid Mortgage Insurance Jumbo Loans are normally slightly higher than regular Jumbo Loans. The mortgage insurance premium is built into the rate. With 90% LTV Jumbo Loans, lender-paid mortgage insurance Jumbo Loans are ideal for borrowers who want to put down as little cash as possible on their high-end home purchase.
90% LTV Jumbo Loan Requirements
For borrowers to qualify for a 90% loan to value Jumbo Loans the following are the requirements:
- The minimum credit score of 660
- Minimum of six months reserves which can be IRA, 401K, investment accounts, and other liquid securities
- It does not have to be in cash
- Minimum of 50% debt to income ratio
- No overdrafts in the past two months
- No late payments in the past 12 months
- Minimum of 4 credit lines the past 12 months
- No bankruptcies nor foreclosures in the past 4 years
- Maximum loan amount of $5,000,000
- No debt settlement programs nor no reduced payoffs with creditors in the past 4 years
Debt settlement and reduced payoff programs are viewed the same as bankruptcy.
Qualifying For 95% LTV NON-QM Jumbo Loans
Gustan Cho Associates Mortgage Group now offers 90% LTV Jumbo Mortgages with no mortgage insurance for W2 wage earners.
- 660 FICO credit score is required
- The maximum loan limit is $3,000,000
- Borrowers under 660 credit scores need to put more money down
NON-QM Jumbo Mortgages For Self Employed Borrowers
Gustan Cho Associates offers non-QM jumbo mortgages for W-2 employees and self-employed borrowers.
- No income tax returns are required for non-QM jumbo bank statement mortgage loan programs
- There is no private mortgage insurance required on all non-QM loans including Jumbo non-QM mortgages
- The maximum loan amount is capped at $3,000,000
- No waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
- Higher loan balances on Jumbo loans can be negotiated to a higher loan limit with compensating factors
- 10% to 30% down payment
- Down payment requirement depends on borrowers credit scores, lender’s layered risk levels, and compensating factors
- Mortgage rates depend on down payment and credit scores and the lender’s risk levels
High-end home buyers who are interested in qualifying for either a traditional and/or non-QM 90% LTV Jumbo Loans, please contact us at Gustan Cho Associates at 262-716-8151. Or text for a faster response. You can email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Apply today at www.gustancho.com by clicking the APPLY NOW icon on the top right.