Jumbo Mortgage With 10% Down Payment And No PMI
This BLOG On Jumbo Mortgage With 10% Down Payment And No PMI Was UPDATED On April 15th, 2019
By Gustan Cho
A Jumbo Mortgage is a residential mortgage loan that exceeds the conforming mortgage loan limit.
- The conforming mortgage loan limit is generally capped at $484,350 in most parts of the United States with the exception of Alaska and Hawaii where the conforming mortgage loan limit is capped at $726,525.
Home Buyers exploring mortgage options may hear the term “jumbo loan.” If you do, you are looking at properties that are more expensive for the area. If you are considering homes requiring a mortgage that exceeds $484,350, it’s a good idea to find out more about jumbo loans and discuss them with mortgage lender.
For example, home buyers purchasing $700,000 home and can afford to put a substantial down payment on this home purchase, the maximum a mortgage lender will be able to lend you is $484,350.
- The $453,100 is the maximum conforming mortgage loan limit
- Home Buyers only have 10% or 20% down payment, this can present a problem
- This because the maximum mortgage lender’s limit to lending is capped at $484,350
- In this case scenario, buyers would need to seek a Jumbo Mortgage
- Jumbo Loans are mortgage loans that are over $484,350
- A Jumbo Mortgage is called non-conforming mortgage loans
- Non-Conforming Loans are loans that do not conform to Fannie Mae and Freddie Mac Loan Limits
- Jumbo mortgage loans are home loans over the $484,350 conforming loan limits
Jumbo Mortgage Lending Guidelines
Jumbo Mortgage lenders are different than conventional conforming mortgage lenders because they each Jumbo Mortgage lenders have their own Jumbo Mortgage lending requirements and guidelines.
- In general, most Jumbo Mortgage lenders require lower debt to income ratios
- Most Jumbo Mortgage lenders cap their debt to income ratio requirements to 40% DTI
- Most Jumbo Mortgage lenders require higher credit scores
- The minimum credit score a Jumbo Mortgage lender will require is a minimum credit score of 660
- A 660 FICO credit score is considered extremely low for a Jumbo Mortgage loan applicant and with such a low credit score, the Jumbo Mortgage loan applicant will most likely pay a higher interest rate and the down payment requirement will be substantially more than those with higher credit scores
Jumbo Mortgage With 10% Down Payment
In general, most Jumbo Mortgage lenders require a minimum of 20% down payment with a 700 credit score.
- The Gustan Cho Team can offer Jumbo Mortgages with 10% down payment for Jumbo home buyers with traditional jumbo loans or non-qm jumbo mortgages
- Jumbo Mortgage with 10% down payment requires a maximum of 40% debt to income ratios and a minimum credit score of 740 on traditional jumbo loans
- For those who do not have a 740 credit score, we can help borrowers raise their credit scores to 740 or greater
- Sometimes there are quick fixes such as paying down credit cards or establishing new positive credit or even paying off certain debts
- Non-QM Jumbo Mortgages require 620 minimum credit scores
- 10% to 20% down payment is required on non-qm jumbo mortgages
- The amount of down payment depends on the borrowers’ credit scores
- Maximum debt to income ratios on non-qm jumbo mortgage is 50% DTI
- There is no private mortgage insurance required on non-qm jumbo mortgages
Other Jumbo Mortgage Loan Programs
Besides Jumbo Mortgage with 10% down payment, there are other Jumbo Mortgage loan programs such as Jumbo Mortgage with 15% down payment.
- The 15% down payment Jumbo Mortgage loan program
- There are jumbo mortgages with no private mortgage insurance required
- Mortgage Rates on Jumbo Mortgages with 10% down payment are higher
NON-QM Jumbo Mortgages For Self Employed Borrowers
NON-QM Jumbo Mortgages For Self Employed Borrowers are non-conforming loans with very lax credit and DTI mortgage guidelines. There are no waiting period after housing event to qualify for non-qm jumbo mortgages. 10% to 20% down payment is required. The amount of down payment depends on the borrowers’ credit scores. Mortgage Rates depends on the down payment and credit scores of borrowers. There is no private mortgage insurance required on non-qm jumbo mortgages. There are two types of non-qm jumbo mortgages. One is the standard two years W2s and tax returns required. The second type of non-qm jumbo mortgages is those geared towards self-employed borrowers where no income tax returns are required. They are either 12 months or 24 months bank statement jumbo mortgage loans for self-employed borrowers. The average deposits on bank statements over the past 24 months are used to calculate monthly income. Personal or business bank statements can be used. If personal bank statement deposits are used, then 100% of the deposits are averaged over the past 24 months. If business bank statement deposits are used, then 50% of deposits are averaged over the past 24 months. Bank statements used needs to be from one bank and no overdrafts are allowed. If it is a joint bank statement with husband and wife, then both husband and wife need to go on loan.