In Charlotte, NC and most of the Carolina's, the most you can borrow with a loan backed by Fannie Mae or Freddie Mac is $417,000. In some parts of the country, this number is higher - but stick with me - these strategies work.
There are 4 and a half key strategies to employ to borrow more than the conforming loan limit. For full details, visit my blog at www.FairwayNC.com/blog/
1. 30 Year Jumbo Mortgage for up to 80% of the home value. This has the security of a fixed rate, but that comes at a price - the Jumbo 30 year fixed rate is the highest interest rate you will pay. Credit, income and assets must be perfect, and you will need at least a 20% down payment.
2. Jumbo ARM - rates are lower than the 30 year fixed Jumbo, but they are fixed for the first five or seven years. (You will see this listed as a 5/1 ARM or a 7/1 ARM). Since the lender will have the chance to adjust the rate later on, they will give you a lower rate for the first five years.
3. Combo of a $417,000 first mortgage and a 2nd mortgage for up to 90% of the home value. just recently, some 2nd mortgage programs have loosened up to where we can do a conforming first mortgage for up to $417,000 and get the lower Fannie Mae rates, and add on a 2nd mortgage for the difference. This allows you to avoid the Jumbo interest rate penalty altogether.
4. Use the Home Ownership Accelerator. We were the first Charlotte Mortgage Lender to offer this fantastic loan program. It requires a 25% down payment, but the rate is currently at 3.5% and you can borrow up to $2.5 million for your luxury Charlotte home purchase. This program is so unique we built a special website with more info at http://hoa.fairwaync.com/
4.5 Make a big honking down payment on your Charlotte Luxury Home and only borrow $417,000. This allows you to avoid Jumbo rates, but is only half a strategy as you aren't borrowing more than $417,000 as this article title says.
If you are looking at buying a Charlotte luxury home, or need to borrow more than $417,000, these are the 4.5 top strategies to do so. More importantly, before you sign a contract to buy a luxury home in Charlotte, meet with a Mortgage Planner to determine the best strategy for you to use.
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