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