A Jumbo loan is any single loan amount over the conforming loan limit of $424,100 throughout most of Michigan and the U.S. When Fannie Mae and Freddie Mac limits do not cover the full loan amount on high valued homes, the loan is referred to as a “Jumbo” mortgage. Many residents in MI are not aware that jumbo financing options are available up to 95% financing, and without monthly mortgage insurance (PMI) costs. The Michigan Jumbo is especially good for home buyers looking to purchase in the higher costs locations around Detroit, Grand Rapids, Lansing, Ann Arbor, etc. Below we will look at the basic requirements for 2017, please contact us below with any questions.
- 95% financing to $1,000,000 with no PMI with scores of 700+. Choose from 1 single loan, or an 80/15 combo mortgage option. Great for higher cost areas like in Michigan. Please note the loan amount limit for 95% is $1,500,000
- NO PMI on 95% financing jumbo loans (save up to $500 a month PMI)
- Purchase with only 5% down payment - great for doctors, physicians, attorneys and other professionals that have the income but lack a large down payment.
- Interest rates are nearly as low as most conventional loan options
- The 95% jumbo is for owner occupied, purchase and rate term transactions. Financing is available for 1 Unit Single Family Residence, Attached or Detached Housing and warrantable condominiums.
- Smaller non-jumbo loans can still be offered up to $424,100 with a minimum score 620
- Great for Jumbo refinance options for eliminating current mortgage insurance costs
- NOTE - ALL the requirements are for PRIMARY homes only. Other jumbo financing options available for vacation homes and investment properties. Most of these programs will require at least 15% down payment.
Please also note the following options for buyers that have 10% + down payment
- 90% Loan to value: Up to $2,500,000 with 720+ credit score.
- 85% Loan to value: Up to $3,000,000 with 740+ credit score.
There are a few reasons why a home buyer may want to only put down as little as possible, even when they may have a larger down payment:
- Limited down payment due to pending sale of current residence – while the real estate market has seen drastic improvements, some homes make take longer to sell. If you are looking to move forward on a new purchase before your existing home sells, this may be a good a good option.
- Home Improvements, etc – Most homes will need updating; by only putting down 5%, you can save the rest of your money for needed remodeling, new furniture or other improvements.
- Retain savings in higher yield investments – check with you trusted financial advisor, but sometimes it could make better financial sense to put less down on your house and keep your money working for you.
Note To Military personal - be sure to learn about special VA Jumbo purchase options for eligible borrowers.
Call Jumbo Mortgage Source with questions at 800-962-0677 (7 days a week)