Jumbo Loans. Down Payments as Low as 5% Down!

Down payments as low as 5% and Loan amounts up to $2,000,000

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Jumbo Loans Program Guidelines

Loan Purpose

  • Purchase
  • Rate-term refinance
  • Cash-out refinance

Transaction Type: Purchase

  • All borrowers on the loan must have a minimum:
    • 720 middle credit score and maximum Debt-To-Income (DTI) ratio of 43%:
      • With minimum 5% down and loan amounts up to $650,000
      • With minimum 10% down and loan amounts up to $850,000
    • 740 middle credit score and maximum debt-to-income ratio of 41%:
      • With minimum 15% down and loan amounts up to $1,000,000
      • With minimum 20% down and loan amounts up to $2,000,000

Transaction Type: Cash-out Refinance

  • Maximum 80% Loan-To-Value (LTV) to combine the 1st and non-purchase money 2nd
  • Maximum 75% LTV for cash-out at closing with maximum $50,000 cash-out
  • Maximum 70% LTV for cash-out at closing with cash-out at closing exceeding $50,000
  • Subordinate financing allowed on refinances up to 90% LTV, with the 1st trust lien not exceeding 80% LTV

Jumbo Loan Product

  • 5/1, 7/1, 10/1 ARM, fixed for a 5, 7, and 10-year fixed period
  • 5/5, adjusts every 5 years after initial 5-year period
  • 3/1 ARM available with maximum 80% LTV
  • Tied to the 5-year Treasury Bill
  • 2% initial and period rate adjustment cap
  • 6% lifetime cap
  • 2.50% margin

Credit Profile

  • 720 minimum middle credit score with maximum loan amount of $850,000
  • 740 minimum middle credit score with maximum loan amount of $2,000,000
  • If more than one borrower on the loan use the lower of the two-middle credit score
  • Foreclosure or bankruptcy on credit report not permitted
  • Minimum of 3 trade lines, one of which has a 24-month history
    • Can substitute with a Verification of Rent in place of a third tradeline or lacking a 24-month history
  • No unpaid public records and collections (including medical). All public records and collections require written explanation
  • No judgment, repossessions, or charge-offs in the last 60 months
  • No mortgage delinquency in the last 12 months

LTV/CLTV/Score/DTI

  • 95% LTV up to $650,000 with a 720 credit score and maximum DTI 43%
  • 90% LTV $650,001 to $850,000 with a 720 credit score and maximum DTI 43%
  • 85% LTV $850,001 to $1,000,000 with a 740 credit score and maximum DTI of 41%
  • 80% LTV 1,000,001 to $2,000,000 with a 740 credit score and maximum DTI of 43%
  • Subordinate Financing on Purchase Loans allowed up to maximum GSE guidelines for Super Conforming loans. Loan must receive accept/eligible through Freddie Mac Loan Product Adviser.
  • Subordinate Financing allowed on Refinances – Maximum CLTV of 90% and LTV of 80%.

Loan Amount

  • Financed loan amount not to exceed $2,000,000

Mortgage Insurance (MI)

  • LTV over 805 must be approved by MI company
  • MI factorial 95% LTV – 30%, 90% LTV – 25%, 85% LTV – 12%

Ratios

  • Maximum debt-to-income ratio:
    • 41% DTI ratio with a 720 middle credit score
    • 43% DTI ratio with a 740 middle credit score
  • 7 and 10 year ARM qualified at start rate
  • 3 and 5 year ARM qualified at the fully amortized rate

Property Type

  • 1 Unit Single Family Detached, Attached, or Condominiums
  • Condominiums must be Agency Guidelines
  • Property cannot be in a declining market

Occupancy

  • Owner occupied only
  • All borrowers on the loan must have ownership in and occupy the property
  • No co-signers permitted
  • Second Home loans up to the GSE Super Conforming loan and loan to value limits. Loan must be run through Freddie Mac Loan Adviser and receive an accept/eligible.

Property Valuation

  • Full appraisal with interior inspection and photos
  • Loan amounts over $650,000 require two appraisal reports. The lower value of the two reports will be used for qualifying purposes

Documentation

  • All loans must be fully documented per Agency Guidelines
  • For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)

Down Payment/Closing Costs

  • Borrower must have 5% of own funds
  • Seller contribution toward buyers closing costs:
    • Up to 3% of the purchase price for 90% loan-to-value
    • Up to 6% of the purchase price for less than 90% loan-to-value
  • No gifts
  • Reserve requirements:
    • Above conforming maximum to $650,000 – 4 months reserve
    • $650,001 to $850,000 – 6 months reserve
    • $850,001 to $1,000,000 -9 months reserve
    • $1,000,001 to $2,000,000 – 12 months reserve
    • Cash out funds may not be considered for reserve requirement

Terms

  • Amortization period: 30 years

Existing Properties Owned

  • Borrower may own or retain other properties, as long as approved by Mortgage Insurance Company