95 LTV Jumbo Loans With No Private Mortgage Insurance

This BLOG On 95 LTV Jumbo Loans With No Private Mortgage Insurance Was UPDATED And PUBLISHED On February 21st, 2020

What is the significance of 95 large LTV loans without private mortgage insurance

Real estate prices have been increasing since 2010. Despite mortgage rates being the highest since 2010, home prices have been increasing with no signs of any correction.

  • The Federal Reserve Board is planning on increasing rates again
  • There seems to be a shortage of home inventory versus demand nationwide
  • The maximum loan limit for FHA is $336,760
  • Conventional and VA Loan Limits is capped at $510,400 unless the properties are in a high-cost area
  • Due to rising home prices both HUD and FHFA have increased loan limits for two years in a row
  • Many qualified home buyers were hindered in buying homes due to home prices exceeding government and conforming loan limits and falling into non-conforming/Jumbo Loan Limit territory
  • Any loans over $510,400 are considered Jumbo Mortgages
  • However, lenders required 20% to 25% down payment on all Jumbo Loans
  • Due to this issue, Gustan Cho Associates launched the 95 LTV Jumbo Loans

The great part of 95 LTV Jumbo Loans is borrowers will have no private mortgage insurance required.

95 LTV Jumbo Loans Is Now Available For Home Buyers

NON-QM 95% Loan Product:

An amazing new NON-QM loan product has been added to our long list of loan products available at Gustan Cho Associates at Loan Cabin.

  • We are excited to roll out a 95 LTV Jumbo Loans
  • It is a NON-QM mortgage loan program
  • This will be a game-changer for many clients
  • This holds true especially for homebuyers in need of Jumbo Mortgages
  • It is tricky to get a Jumbo loan with 10% down these days
  • 5% down payment is UNHEARD OF

In this blog, we will explore the qualifications of the NEW 5% down payment NON-QM loan with NO MORTGAGE INSURANCE.

Buyers Benefiting From 95 LTV Jumbo Loans With No Mortgage Insurance

Are buyers using 95 large LTV loans without mortgage insurance

Who is the 95% LTV NON-QM mortgage designed for?

  • Higher priced homebuyers who do not want to put all their cash down for down payment
  • Borrowers who are 4 years out of a Foreclosure, Deed-in-Lieu, or Short Sale
  • Borrowers looking to purchase over FHA loan limits

What are the basic requirements for the 95% LTV product?

  • Must have a 720 or higher credit score
  • Only available for ONE Unit Primary Residences

Full Income Documentation:

  • NOT a bank statement loan

Cannot have late payments on housing:

  • Cannot be 30 days late on housing payment in the last 12 months
  • MUST HAVE 12 months of reserves (total mortgage payment, PITIA)

Reserves do not need to be cash:

  • Can be 401k and/or investment accounts

Max DTI = 35%/40%:

One of the best features of this loan product is you are not required to carry mortgage insurance.

  • Mortgage insurance is great for many loan products when not putting down 20% but can be a pain to cancel
  • With this NON-QM loan product, homeowners will not need to worry about canceling their private mortgage insurance premium and you’re not putting down 20%

Meaning you will not need to go through the troubles of canceling your Mortgage Insurance once you get your loan down to 80% LTV or carry throughout the life of the loan like some FHA loans.

Underwriting Guidelines

Underwriting Requirements:

Primary wage earners credit score will be used if co-borrower has lower than 720 credit scores:

  • Must be above 720

Must show no late payments on housing payments in the past 12 months:


Must have 3 or more tradelines reporting for 12 months or longer:

  • or 2 tradelines reporting for 24 months or longer AND have activity within the past 12 months

Closing in 30 days or less.

Homebuyers with any questions about the new 5% Down Payment JUMBO Mortgage, call Mike Gracz on 630-659-7644 or text for a faster response. Or email Michael Gracz of Gustan Cho Associates at [email protected]. Remember this new Mortgage product ranges from $130,000 to $1,500,000 making it a great JUMBO mortgage opportunity. We are experts in NON-QM and alternative financing and can help home buyers get into the house you and your family have been dreaming of! We are a full-service lender and we do not have ANY LENDER OVERLAYS so we can service most clients. The Team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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  • Good morning,

    I am coming out of chapter 13 bankruptcy and my last payment is in September, and expect a discharge in October.

    I currently have a primary loan with a balance of 176,000 and a second with a balance of 91,000; both with the same bank, My home has a worth of approximately $630,000. Lived in the home for 28 years.

    I am in need of a non-QM loan to refinance.

    Thank you,

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