95 LTV Jumbo Loans With No Private Mortgage Insurance

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95 LTV Jumbo Loans With No Private Mortgage Insurance

This BLOG On 95 LTV Jumbo Loans With No Private Mortgage Insurance Was UPDATED On October 29th, 2018

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
  • Maximum loan limit for FHA is $294,515
  • Conventional and VA Loan Limits is capped at $453,100 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 $453,100 is considered Jumbo Mortgages
  • However, lenders required 20% to 25% down payment on all Jumbo Loans
  • Due to this issue, Gustan Cho Associates at Loan Cabin Inc. 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 home buyers 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

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

  • Higher priced home buyers 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 last 12 months
  • MUST HAVE 12 months of reserves (total mortgage payment, PITIA)
  • Reserves does not need to be cash
    • Can be 401k and/or investment accounts
  • Max DTI = 35%/40%
  • Loan amounts $130,000 – $1,500,000
  • Note: Not available for rate and term refinancing

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 cancelling your Mortgage Insurance once you get your loan down to 80% LTV or carry throughout the life of the loan like some FHA loans.

95 LTV Jumbo 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 past 12 months
    • RENT FREE NOT ALLOWED
  • 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

Home buyers with any questions about the new 5% Down Payment JUMBO Mortgage, call Mike Gracz on 630-659-7644 or text for faster response. Or email Michael Gracz of Gustan Cho Associates at Loan Cabin at mgracz@gustancho.com. 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 Gustan Cho Team at Loan Cabin Inc. is available 7 days a week, evenings, weekends, and holidays.

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