Non-QM Jumbo Mortgage Guidelines For High-End Home Buyers

This ARTICLE Is About Non-QM Jumbo Mortgage Guidelines For High-End Home Buyers

Non-QM Jumbo Mortgage Guidelines For High-End Home Buyers With Low Down Payment Options:

  • Gustan Cho Associates are always growing our portfolio of loan programs we offer
  • As home prices across the nation continue to rise, jumbo options are becoming more attractive
  • In this blog, we will detail what a jumbo mortgage means, detail a few jumbo mortgage options we offer
  • We will also explain how to apply for a jumbo mortgage with our team

In this article, we will discuss and cover Non-QM Jumbo Mortgage Guidelines For High-End Home Buyers and Low Down Payment Options.

What Are Jumbo Mortgages?

In basic terms, a jumbo mortgage means a large mortgage. A jumbo mortgage is defined as a mortgage loan amount above the conforming loan limit set by the FHFA, Federal Housing Finance Agency. The conforming loan limit in the majority of the country is $548,250. This number is based on home price indexes from data gathered over the past four quarters. This number will determine the average home sale price for each county.

In most areas of the country, the FHA loan limit is even lower. The current FHA loan limit for non-high cost counties is $356,362 for the calendar year of 2020 This number increased by almost $17,000 compared to 2019. As you can see, the home price trends across the nation are increasing, which is increasing the need for jumbo mortgage products.

Types Of Loan Jumbo Loans And Non-QM Jumbo Mortgage Guidelines

Now that we understand what a jumbo mortgage means, what are some jumbo products?

Standard jumbo mortgage:

  • There are a lot of options when it comes to jumbo mortgage financing
  • Your everyday jumbo mortgage product can be quite hard to qualify for
  • They usually have significant down payment, reserve requirements. and tighter debt to income requirements
  • Most jumbo mortgages require a 20% down payment, 12 months of cash reserves, a 720 credit score, and a maximum debt-income ratio of 41%

This can be incredibly difficult to qualify for. The standard jumbo mortgage will typically have the best terms available because they are the least risky.

Piggyback Jumbo Mortgage Programs

80/10/10 Jumbo mortgage:

  • If you are in the market for a jumbo mortgage, you may have heard the expression 80-10-10
  • This means you will get a first jumbo mortgage for 80% loan to value, a second mortgage or a 10% loan to value, and you are required to pay a 10% down payment
  • The second mortgage will keep you eligible for many jumbo programs
  • With this jumbo mortgage format, your cash reserves will determine the max loan amount available
  • We have loan products with up to $1,500,000 loan amounts without a reserve requirement

Please call Mike Gracz on 630-659-7644 or send an email to [email protected] for more specifics.

Nationwide High-Balance Mortgages In High-Cost Counties

Nationwide High-Balance Mortgages In High-Cost Counties


  • There are parts of our country where the conforming loan limit can be higher than the conforming loan limit.
  • These are areas such as San Francisco County California, parts of Colorado, Alaska, Hawaii, and more where the loan limit surpasses the traditional conforming loan limit due to being classified as high cost.
  • Please see this link for a list of HIGH BALANCE COUNTIES for 2020.
  • This unique loan program uses conventional guidelines for loan amounts substantially higher than the conforming loan limit.
  • This loan program will make any non-high balance county a high balance county.

This program does require a 10% down payment, minimum 680 credit score, and can be used for a primary, second home, or investment property. The loan amount must be at least $1 over the conforming loan limit for your county.

Non-QM Jumbo Mortgage Guidelines For Self-Employed Borrowers


Let’s be honest, if you are self-employed, it can be tough to qualify for a mortgage. Especially a jumbo mortgage where the payment is usually higher than a conforming mortgage. Most jumbo guidelines will use the same income calculations as conventional mortgages for self-employed borrowers. When you take tax write-offs, it will count against your mortgage qualifications. We offer a great alternative, using your bank statements for qualifying income. The general rule of thumb is; the underwriter will use 50% of your business-related deposits based on your bank statements. The other 50% is assumed to be business-related expenses. No tax returns are involved in the process. This can be a great solution to qualify for your dream home.

95% LTV Non-QM Jumbo Mortgage Guidelines


  • That is correct, you can enter a jumbo mortgage with as little as a 5% down payment
  • These programs do have specific requirements but are a great way to keep your cash liquid when buying an expensive home
  • A few basic requirements are; minimum 720 credit score, 12 months of reserves, Max DTI 40%, Max loan amount $1,500,000
  • You may not have a foreclosure, short sale, or deed-in-lieu in the most recent four years
  • That four-year waiting period is very forgiving for Jumbo mortgages
  • A standard jumbo mortgage can have up to an eight-year waiting period

In order to qualify for this 5% down payment mortgage product, you must have zero housing late payments for the past 12 months (must be able to documents, no rent-free allowed).

Five-Star National Mortgage Company With No Lender Overlays

How to apply for a Non-QM Jumbo mortgage with Gustan Cho Associates

How to apply for a Non-QM Jumbo mortgage with Gustan Cho Associates?

  • Applying for a jumbo mortgage with our team is very simple
  • Your first step is to call Mike Gracz on 630-659-7644
  • After a brief conversation, Mike will link you with a licensed loan officer in your state
  • Depending on which jumbo mortgage product is right for you, a list of documents required will be emailed to you as well as an application link
  • That application link will allow your loan officer to verify your credit profile and start the pre-approval process

Once your loan officer has your credit profile, income, and asset documentation, they will be able to explain the next steps. You will now be able to go house shopping!

Experts In Non-QM Jumbo Mortgage Guidelines For High-End Home Buyers

As you can see, we offer many jumbo mortgage products. Some with as little as a 5% down payment. This is a great way to keep your cash liquid and buy your dream home at the same time. We are experts in jumbo mortgages and are available seven days a week for questions. We offer more mortgage products for home buyers and homeowners than most lending institutions, especially in the jumbo category. If you have been on the fence or turn down in the past, please give us a call today. If for any reason you do not qualify today, we will come up with a customized financial plan to qualify for your home as soon as possible. We look forward to helping you buy your dream home.

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