Even with the slowdown in the real estate market, the high-end (over $1 million) seems to be remaining pretty steady overall.

In the past year or so, I have closed over a dozen loans in the high-end luxury market.  They have ranged from $1,000,000 to $5,250,00 in Nevada, California, and Utah.   Most were in the $1.5M - $3M range.   

Some of these were second homes.  I am currently working on one for nearly $8M.

So, what's the biggest difference today between securing a loan for $400,000 vs. one for $4,000,000.  Although 100% financing at $4M is no longer available as it once was, in my view, there is not as much as you would think.

Here is what you need to know, in my experience.

1) The loan to values will likely be lower.   Although you can still sometimes get 100% financing in some areas for loans up to $417,000, once you pass $1,000,000, plan on between 5% - 30% down as you climb the loan scale.    Once you pass $3,000,000, plan on 30% down.

2) Plan on proving your income through tax returns or putting even more down as you climb in loan.   A $2M loan that requires only 20% down with a full documentation of your income may become a $2M loan that requires as much as 25-40% down if you have to state your income.    Securing a stated income loan over $3,000,000 today is very challenging.  If you can prove your income, the sky could be the limit.

3) As the loan amounts climb, it's likely, so will your credit score requirements.  Although some loans are available in the millions for scores as low as 620, once you get past $3M, you may want to plan on 700 scores or higher.

4) The rates aren't likely as bad as you think.  With good credit, solid tax returns and reserves, you may find the rates to be very competitive with regular jumbo loans.  Because of the lower loan to values, you will likely get the pricing benefits of these higher down payments.

5) The higher you go, the chances are more scrutiny will be placed on your cash-flow.  If you are looking for a loan over $3M, your bank statements and reserves will likely be scrutinized as much as your tax returns.   The lender may want to make sure you have a steady flow of cash coming in to make these payments.  Your current bank statements could tell this tale better than last year's tax returns.

6) The loan programs may be limited.   In the place where I work, once the loan amount gets over $1.5M, today, a 30 year fixed rate mortgage may no longer be an option.    However, you can likely choose between a 5, 7. or 10 year ARM.     This is probably a temporary condition of the credit crunch and the limited ability to sell the loan in secondary.

7) The customer service will likely rise to a very personal level you would expect at this loan size.   Once the loan amount hits $3M at my bank, in my experience, a team of seasoned high-end experts, at the top levels of the institution, get involved.  They partner with my team to make sure you get immediate results and prompt attention...even to the point where you may be offered special insurance policies specifically designed for the higher income client.

8) The loan will likely be given every consideration.   Once you get to these levels, like an FHA loan, in my opinion, the overall strength of the loan is looked at more than hard guidelines.   As a result, the guidelines end up in second position to the ability of the borrower to repay.  If you can show your debt to income ratio is very low and you have a substantial down payments and reserves, your credit score may not be as important as the strength of your ability to repay.

9) The loan can likely be done very quickly.  Loans this size, because of the incredible personal attention they receive, and today's technology, can be done in the same time as a regular conventional loan....in a matter of days or weeks.

If you are working the luxury home market, or buying an estate home, it's important to associate with a lender, preferably in your area, who has an extended, proven track record in the high-end.  

Although many of the high-end buyers have cash or don't need sizable loans, with the rates are as low as they are today, most may want to weigh their low-interest financing options before exhausting that kind of cash.

I have made it sound pretty easy here but, like every niche in real estate and lending, experience counts.