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 And PUBLISHED On March 8th, 2020
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 $336,760
- Conforming Loan Limits is capped at $510,400
- Any home loan higher than $510,400 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 are 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 is proud to announce our new Jumbo Loans With 5% Down Payment With No Mortgage Insurance that is available immediately. In this article, we will discuss and cover Jumbo Loans With 5% Down Payment With No Mortgage Insurance.
Down Payment Requirements On Jumbo Mortgages
Lenders consider buyers with a larger down payment on home purchase less risky borrowers.
- Especially with Jumbo Mortgages
- The larger down payment shows borrower has skin in the game
- Homebuyers 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 a 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, 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.
- The 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 do 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 a faster response. Or email us at email@example.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. Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.