A jumbo loan is a non-conforming mortgage that provides financing for loan amounts higher the standard Fannie Mae and Freddie Mac loan limits. It may be a good choice if you are purchasing a higher priced home in Arizona and can manage larger monthly mortgage payments. Jumbo loans are available for purchase and refinance loans (including cash-out refinances). Purchasing a luxury home with the right financing terms can be a challenge. With high-cost homes and unchanged conforming loan limits, buyers often times are required to put more money down than desired. However, this is starting to change with the new 95% Jumbo loan financing options available today.
Even if you have a large down payment it may not be the best choice to invest it all in your home. Why? Let's explain.. jumbo mortgage rates are near historic all-time low levels, many borrowers financing a higher prices homes will find it's better to leverage these low rates instead of making a 20 percent down payment on mortgage. Keeping as much cash as possible working in equities, mutual funds or bonds might be the favored choice in lieu of tying up liquid assets in real estate. The jumbo mortgage market is similar to conforming and government-backed programs but sometimes there can be slight differences from one bank to another. Because jumbo lenders don’t necessarily have to conform to another bank’s jumbo guidelines, they can introduce a jumbo program that few, if any, mortgage lenders have, including down payment requirements for a jumbo loan.
The new 5% down jumbo loan option is a great financing option many Arizona home buyers. This is especially a good option for the higher costs locations in Phoenix, Flagstaff, Tempe, Tucson, and Scottsdale. This program will allow buyers to finance a home up to 95% with a loan amount limit of $1,500,000. And the best part is no monthly mortgage insurance costs. Let's look at some highlights below.
- Max 95% financing is only available for applicants that can fully document income, assets, etc.
- To obtain the max 95% financing, borrowers will need a 700+ credit score.
- The program can be used to purchase a single family home, townhome or condo.
- Second homes, vacations home and investment property purchases are permitted but will require a slightly higher down payment of 10% down or more. 5% down is only available for primary homes
- Applicants can choose an interest rate buy down, or a reduced closing cost alternatives.
- Higher loan amounts available. Up to 90% LTV financing to $2,500,000 with 700+ credit score.
- Up to 85% LTV financing to $3,000,000 with 720+ credit score. Please contact us if you are financing over 5 mil.
- Jumbo rate-term, plus cash out refinance options are available for homeowners that already have a high-cost mortgage.
- Jumbo interest rates can vary based on the term and credit score. Borrowers will choose between secure fixed rate options or adjustable rate terms (ARM)
Have questions or want to learn more? Please visit http://jumbomortgagesource.com/jumbo-purchase/ or call ph: 800-962-0677 ( 7 days a week)
Serving all luxury home buyers in the U.S. - including AZ: Phoenix, Tucson, Mesa, Chandler, Glendale, Scottsdale, Gilbert, Tempe, Peoria, Avondale, Goodyear, Casas Adobes, Flagstaff
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