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Jumbo Loans With 5% Down Payment With No Mortgage Insurance

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Jumbo Loans With 5% Down Payment With No Mortgage Insurance

This BLOG On Jumbo Loans With 5% Down Payment With No Mortgage Insurance Was UPDATED On October 23rd, 2018

Both HUD and FHFA have increased loan limits due to rising home prices two years in a row.

  • Despite higher interest rates, there is more demand for homes nationwide
  • Due to more demand than supply of housing, home prices are rising with no signs of a housing correction
  • FHA Loan Limits is capped at $294,515
  • Conforming Loan Limits is capped at $453,100
  • Any home loan higher than $453,100 loan balance is called Jumbo Mortgages and/or Non-Conforming Loans
  • Most Lenders have much tougher lending requirements on Jumbo Home Loans than government and/or conventional loans
  • More and more lenders nationwide is offering Jumbo Loans to keep up with rising home prices
  • However, Jumbo Loans are considered riskier loans for lenders
  • It takes time to resell a higher end property that has been foreclosed
  • Mortgage Rates are much higher and down payment requirements are larger on Jumbo Mortgages
  • Lenders also normally require 740 credit scores and 12 months reserves on non-conforming loans
  • Down payment requirements are normally 20% to 25%

Gustan Cho Associates at Loan Cabin Inc. NMLS 1657322 is proud to announce our new Jumbo Loans With 5% Down Payment With No Mortgage Insurance that is available immediately.

Down Payment Requirements On Jumbo Mortgages

 

Lenders consider buyers with larger down payment on home purchase less riskier borrowers.

  • Especially with Jumbo Mortgages
  • Larger down payment shows borrower has skin in the game
  • Home buyers with 20% to 25% down payment will not easily let their homes foreclose
  • Most higher end home buyers may have the necessary 20% to 25% down payment on home purchase
  • But may not want all that cash tied up to their homes
  • Many may need it for other purposes like for their businesses or investments

With our new Jumbo Loans With 5% Down Payment Program at Gustan Cho Associates at Loan Cabin Inc., it provides flexibility for higher end home buyers. They can now purchase a home of their dreams without soaking tons of money for their down payment.

Jumbo Loans With 5% Down Payment With No Mortgage Insurance Guidelines

Gustan Cho Associates at Loan Cabin Inc. is proud to announce the offering of Jumbo Loans With 5% Down Payment With No Mortgage Insurance.

  • Maximum loan amount is $1.5 million for the 95% LTV Jumbo Loan Program
  • Our NON-QM Jumbo Loans With 5% Down Payment With No Mortgage Insurance requires a credit score of 720 minimum
  • This loan program is for full doc only and is not available yet for bank statement loan program for self employed borrowers
  • 12 months reserves of P.I.T.I.
  • Reserves does not need to be in cash
  • 401k Retirement Accounts and/or other liquidable investment accounts can be used as reserves
  • No private mortgage insurance required
  • 5% down payment loan program is for primary owner occupant residences only
  • It is for purchases only and not for refinancing
  • The loan program is for single family homes only and not multi-family dwellings
  • Verification of Rent required for past 12 months of timely housing payment history
  • Maximum front end debt to income ratio is capped at 35% DTI
  • Maximum back end debt to income ratio is capped at 40% DTI

Borrowers with credit scores under 720, please contact Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We can help boost credit scores through our in-house FICO Simulator at no charge. There are some quick fixes in boosting credit scores to qualify for mortgage .

Gustan Cho Associates offers bank statement mortgage loans for self employed borrowers. No income tax returns are required and we just go off either 12 months and/or 24 months bank statement deposits. The average monthly deposit is used as borrowers qualified monthly income. The Gustan Cho Team at Loan Cabin Inc. is available 7 days a week, evenings, weekends, and holidays.

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