Michigan Jumbo Home Buyer Guide 2020

Mortgage and Lending with Jumbo Loan Center

Michigan home buyers now have more Jumbo loan options with low down payments.  In fact, qualified borrowers can finance up to 95% loan to value.  This is good news for home buyers in high-cost locations of Grand Rapids, Detroit, Ann Arbor, Lansing, Flint, etc.  The housing market has expanded a lot in recent years, thus lender jumbo guidelines have continued to relax. There are a couple of Jumbo loan options with a minimum 5% down payment, let's look at the details below. 

  • 30 year and 15-year fix rates, plus ARM options available in 5/1, 7/1, 10/1
  • 5% down payment available in all states - loan amount limit of $2,000,000
  • 90% financing - 10% down payment available up to $3,000,000
  • No PMI, single loan and combo 80/15 loan options depending on the state. Both Jumbo purchase and rate reduction refinance allowed
  • 95% financing for owner-occupied homes only - other options for second homes or vacation homes are permitted with greater down payment. See website for complete details. 
  • Minimum 700 FICO For all borrowers financing over 90% LTV. 
  • Partial gift down payment allowed
  • Payoff of debts to qualify allowed
  • Must be U.S. citizen
  • 43% maximum debt to income ratio
  • Buyers must fully document income (tax returns) and savings. This is not a reduced or stated income program.
  • Single Family homes, Condo, Townhomes are eligible
  • VA High-Cost Jumbo mortgages available for approved Vets. 


Take Note: All jumbo loan programs do require “payment reserves” which are savings left over after the buyers down payment and closing costs. Each program and scenario is different, but most 95% jumbo loans require at min 3 months of cash reserves. Higher loan amount over $2,500,000 + will require at least 9 months of cash reserves.  Retirement assets such as 401(k) or IRA’s will count towards reserve requirements.


Questions? Please contact us today by visiting www.JumboLoanCenter.com

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