What is CLTV Jumbo for buying high-end homes

95% CLTV Jumbo Mortgage For High-End Home Purchases

Gustan Cho Associates are mortgage brokers licensed in 48 states

Are There Any Mortgage Lenders That Offer 95% CLTV Jumbo Mortgage For High-End Home Purchases? You are in luck. Gustan Cho Associates are experts in helping borrowers qualify for a jumbo mortgage up to a $2 million dollar loan balance qualify for a jumbo mortgage with a 5% down payment. The team at Gustan Cho Associates will help homebuyers structure a piggyback mortgage loan program with an 80% first mortgage and a 15% second mortgage with one of our wholesale lending partners. The total CLTV will be 95%. Closing costs can be covered with a seller’s concession of up to 3%. We have been having a lot of inquiries on our 95% CLTV Jumbo Mortgage Program for high-end homebuyers. In this article, we will discuss and cover the 95% CLTV Jumbo Mortgage For High-End Home Purchases. Apply Now with Gustan Cho Associates on a 95% CLTV Jumbo Mortgage.

How Does The 95% CLTV Jumbo Mortgage For High-End Home Purchases Work

Lately, Gustan Cho Associates have received numerous phone calls with questions surrounding jumbo mortgage lending. As home values continue to rise across the country, jumbo mortgages are becoming increasingly popular. As you may know, Jumbo mortgages can be quite difficult to qualify for. In this blog, we will detail how to purchase a home above the local conforming limit with only a 5% down payment. There are areas of the country where it is next to impossible to purchase a house unless you use a jumbo mortgage or similar loan program. So if you live in areas such as Los Angeles, Denver, Seattle, and Chicago, this blog is for you.

Understanding Lender Overlays Versus Agency Mortgage Guidelines

This blog will detail how to only put down 5% to purchase a home above the conforming loan limit in your area. The basic qualifications for this 95% combined loan to value loan program. We will cover and discuss how to apply for a 95% combined loan to value mortgage products to purchase a home. If you are reading this article, you probably understand how hard jumbo financing can be to obtain. Most jumbo lenders have their own set of LENDER OVERLAYS for their jumbo mortgage products. This lender overlays consist of credit score requirements, debt to income requirements, reserve requirements, and derogatory credit seasoning requirements.

Jumbo Mortgages After A Bankruptcy And/Or A Housing Event

For most jumbo mortgage lending, a bankruptcy must be seasoned seven years (even up to ten years) from the discharge date, 680 credit score or higher, and up to 12 months in the bank as reserves. Keep in mind, reserves are simply funds we need to verify but those funds remain in your bank.
Reserves can also be in the form of retirement funds. For more information on this topic, please read our blog on the RESERVES. Jumbo mortgage financing can go to loan amounts well over $3 million. Gustan Cho Associates can help homebuyers of properties with loan amounts of $2 million on higher on a case-by-case scenario.

95% CLTV Jumbo Mortgage For High-End Home Purchases: Down Payment Determines Risk Factor For Lenders

Depending on how much money you need to borrow, if you can swing a 10% down payment, this may save you a substantial amount of money over the life of your loan. It is important to invest your money in real estate in the smartest way possible. Paying additional interest to the bank can be the difference of hundreds of thousands of dollars over the life of a jumbo mortgage.

Utilizing The 95% CLTV Jumbo Mortgage Program

How to utilize the 95% jumbo mortgage. Gustan Cho Associates have access to secondary mortgage financing that allows up to 95% combined loan to value (CLTV). We will utilize a conforming conventional mortgage based on the maximum loan limit in your area. From there we will incorporate a second mortgage up to 95% loan to value. The second lien has a loan limit of $500,000. This means you can purchase a $1.1 million house with only a  $55,000 down payment in areas with the standard conforming loan limit of $548,250 (for 2020). If the conforming loan limit is in your area is higher than the standard loan limit, you can finance a higher amount on the first mortgage. These areas are considered HIGH BALANCE. Please see this MAP for the conforming loan limit in your area.

Second Mortgage Eligibility Requirements

Some general qualifications for the second mortgage:

  • 700 credit score or higher is required to go up to 95% combined loan to value
  • Amortization – fixed rate terms of 5, 10, 15, 20, 25, and 30-year mortgages available
  • Debt to income ratio maximum 43%
  • Minimum loan amount $25,000
  • Maximum loan amount $500,000
  • Total financing is limited to $2 million, the total up first and the second lien combined
  • A minimum of three trade lines are required for all borrowers contributing qualifying income
  • At least one tradeline must be open and active for 12 months or greater OR 36 on-time housing payments will override the minimum tradeline requirement if you have no other discretionary debt
  • No mortgage late payments in the past 24 months

12-month rental history verification is required for all purchase transactions.

Seasoning Requirements After Bankruptcy And Foreclosure On 95% CLTV Jumbo Mortgage

What are the seasonal requirements after bankruptcy and taking over 95% of the CLTV Jumbo mortgage

Seasoning requirements:

  • Foreclosure seven years
  • Deed-in-lieu, pre-foreclosure, or short sale – 4 years
  • Modified mortgage- 4 years
  • Chapter 7 or chapter 11 bankruptcy – 4 years from the discharge or dismissal date
  • Chapter 13 bankruptcy – 2 years from the discharge or 4 years from dismissal date

Multiple derogatory events within the past seven years are not permitted until both events are greater than seven years old.

How To Get Started In Getting Pre-Approved For A 95% CLTV Jumbo Mortgage

Applying for the 95% combined loan to value jumbo mortgage with Gustan Cho Associates is very simple. First, you will call Mike Gracz on (800) 900-8569 or send an email to gcho@gustancho.com. You will go over your mortgage qualifications and make sure this loan program will work for you. Please keep in mind these loan programs follow conventional mortgage lending guidelines. Click our CONVENTIONAL MORTGAGE GUIDELINES for more information. During the loan process, the first and second mortgage loans will be processed and underwritten at the same time. Depending on the loan amount, typically they use the same appraisal for both loans. This saves you from paying for more than one appraisal. All items sent in for qualifying on the first mortgage can be used for the second mortgage. So there are no extra
steps for you as the borrower. After your one on one mortgage consultation, Mike Gracz will pair you with a licensed loan officer in your state. You will then work with your loan team to complete an online application and send in the required income and asset documentation. From there, your loan officer will complete the pre-approval process and make sure this loan program will be the best for you.

Gustan Cho Associates Is A Lender Licensed In Multiple States With No Lender Overlays

Gustan Cho Associates are experts in all facets of mortgage lending. Our team of professionals is here to assist you in getting your mortgage loan from start to finish. We do not have lender overlays on any of our conventional, FHA, VA, and USDA mortgage products. We are here to assist you seven days a week. We know your schedule can be chaotic so that’s why we are available in the evenings as well. If you have been turned down for a mortgage in the past, let our team of professionals put the second set of eyes on your file. Most lending institutions have added additional overlays due to the COVID-19 coronavirus outbreak. The good news is, we have not. Feel free to call (800) 900-8569 or email alex@gustancho.com for more. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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