Minimum Down Payment On Jumbo Loans On Home Purchases
This Blog On Minimum Down Payment On Jumbo Loans On Home Purchases Was UPDATED And PUBLISHED On February 10th, 2020
Jumbo mortgages are called non-conforming mortgages.
- This is because they do not conform to Fannie Mae and Freddie Mac conforming guidelines on maximum loan limits
- Jumbo Loans are mortgages that are larger than $453,100 loan limits
- Lenders normally require a 20% down payment or more on traditional Jumbo Loans
- However, Gustan Cho Associates just launched a 5% down payment Jumbo Loans With No Mortgage Insurance Required
We will cover Jumbo Loan Programs with special emphasis on non-QM Jumbo Mortgages with a 5% down payment on this blog.
Traditional Down Payment On Jumbo Loans Versus NON-QM Jumbo Mortgages
Jumbo Loans have tougher mortgage underwriting criteria than conventional and FHA loans.
- Most lenders require a maximum debt to income ratio no greater than 40%.
- Lenders can set their own mortgage lending standards on a down payment on jumbo loans
- To get the best possible rate on a Jumbo Loan, borrowers would want to put as much down payment as possible and have the best credit scores
- There are Jumbo mortgage loan programs with lenient mortgage underwriting guidelines
There are Jumbo Loan programs that only require a 5% down payment with no private mortgage insurance to qualified borrowers.
5% Down Payment On Jumbo Loans
5% Down Payment On Jumbo Loans On Home Purchases To Qualified Borrowers:
- There are certain criteria that are required borrower must meet
- The maximum size for the 5% minimum down payment on Jumbo Loans is that the mortgage loan borrower needs 5% down
- Borrowers must have a maximum debt to income ratio of 40% back end
- For a slightly higher interest rate, the 5% Minimum Down Payment on Jumbo Loans program has a special program where no private mortgage insurance is required
- It is called LPMI, which stands for Lender Paid Mortgage Insurance
- The 5% minimum down payment on jumbo loans program is becoming increasingly popular
- Gives qualified home buyers with limited down payment sources an opportunity to purchase higher-end homes.
The maximum loan size on a 5% down payment on the jumbo loans program is capped to a loan size of $3,000,000.
Guidelines On 5% Minimum Down Payment On Jumbo Loans
For those who want to purchase $3,000,000 residential homes and want to put as little money down as possible, we offer the 5% minimum down payment on jumbo loans mortgage program.
- 5% down Jumbo Loan program, the borrower needs a minimum of a 720 Credit Score
- The maximum debt to income ratio is 40% back end
- The maximum loan size is capped at $3,000,000
- 5% down payment on jumbo loan mortgage program does not require private mortgage insurance.
- We offer adjustable rate mortgage and 30 year fixed rate jumbo loans with no pre-payment penalty fees
For more information on Jumbo Loans, please contact Gustan Cho Associates at 262-716-8151 or text for a faster response. Or email us at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.