Jumbo Loans are portfolio loans that are larger than $417,000. Jumbo Loans normally have higher mortgage rates than regular conventional loans. Most Jumbo Loans’ mortgage rates are 0.50% higher than conventional loans. Most Jumbo Loan mortgage lenders require a 75% loan to value where they require the Jumbo Loan borrower to put down a 25% down payment. There are other Jumbo Loan mortgage lenders that will bump the loan to value to 80% on Jumbo Loans. The higher the loan to value, the higher the mortgage rate. Now we offer 90% loan to value Jumbo Loan programs with no mortgage insurance.
90% loan to value Jumbo Loans
We now offer Jumbo Loans with lender paid mortgage insurance where there is no mortgage insurance premium for the Jumbo Loan mortgage borrower. 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 and the mortgage insurance premium is built in to the rate. 90% loan to value, lender paid mortgage insurance Jumbo Loans are ideal for Jumbo Loan mortgage borrowers who want to put down as little cash as possible on their high end home purchase.
90% loan to value Jumbo Loan requirements
For borrowers to qualify for 90% loan to value Jumbo Loans the following are the requirements:
1. Minimum credit score of 740 FICO.
2. Minimum of six months reserves which can be IRA, 401K, investment accounts, and other liquidable securities. It does not have to be in cash.
3. Minimum of 40% debt to income ratio.
4. No overdrafts in the past two months.
5. No late payments in the past 12 months.
6. Minimum of 4 credit lines the past 12 months.
7. No bankruptcies nor foreclosures the past 4 years.
8. Maximum loan amount of $750,000. Maximum loan amount of $850,000 Jumbo Loan programs available but the loan to value is 85%.
9. 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 a bankruptcy.