JUMBO HOME LOANS FOR PURCHASING

 

Pros of a Jumbo Mortgage:

More Money. The number one benefit of a jumbo loan is the opportunity to get more loan money to purchase a high-quality property.

Low down payments. Unlike many conventional mortgages, jumbo mortgage loans come with low down payments. While conventional mortgage loans usually require a 20% down payment, jumbo loan down payments can be as low as 5%, with 10% a more common figure.

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Jumbos come with competitive interest rates. Interest rates for jumbo loans have declined in recent years, and in 2019, are even slightly lower than a borrower will find with a conventional mortgage loan.

Ample flexibility. Jumbo loans come in different varieties, thus giving borrowers more leeway to choosing the mortgage that works best for them. Borrowers can get a 30-year fixed rate jumbo loan or opt for an adjustable rate mortgage instead. Borrowers love flexibility and they get just that with jumbo loans.

 

Cons of a Jumbo Mortgage:

You'll need a solid credit score. If your FICO credit score stands at 660 or lower, you'll have trouble landing a jumbo mortgage loan. If you can put down a larger down payment, however, you may still be able to obtain a jumbo mortgage.

You'll need to demonstrate a high annual income. Lenders tend to get selective with jumbo loans and will want you to provide proof that you have a solid annual income and have substantial personal financial assets.

You'll need to put cash away on reserve. When you close on your jumbo mortgage loan, you may be asked to put away up to 12 months of mortgage payments aside to get the loan. Lenders ask for a cash reserve in the event the borrower lands in financial trouble.

 

Landing a Jumbo Mortgage Loan:

In many ways, getting a jumbo mortgage is more difficult than landing a conventional mortgage loan, most notably because the loan amount is larger and the lending standards more stringent.

Still, getting a jumbo loan is highly doable if you're both disciplined and creative. Start with these tips.

 

Check with multiple lenders and get multiple interest rate offers:

Since jumbo loans are larger than conventional mortgage loans, any money you can save on rates is a big deal.

For example, just a half a point difference in interest rates for a $700,000 jumbo loan at 4.375% versus 4.875% can save you about $75,000 over the course of a 30-year loan.

 

Check your credit score, and boost it where you can:

You'll need a robust credit score to get a jumbo loan - preferably a FICO score of 680 and up (but the higher the better.) Before you apply for a jumbo loan, check your credit score free at annualcreditreport.com. Scan and check for any errors and report any discrepancies to the major credit reporting bureau that has listed the information - either Experian (EXPGY) , Equifax (EFX) - Get Equifax Inc. Report or Transunion (TRU) - Get TransUnion Report .

 

Get your personal financial documents in order.

Typically, lenders will want to see your most recent tax returns, proof of employment and possibly 90 days or so of bank statements. Mortgage lenders will also prioritize your household debt-to-income ratio to make sure you're not stretched out financially after taking out a jumbo loan.

In general, the lower your DTI, the better. Many lenders will cap a borrower's debt-to-income ratio at 45%.

 

Be prepared to demonstrate a cash reserve:

Your chances of getting approved for a jumbo mortgage loan will increase significantly if you can prove you've put away up to 12 month's worth of mortgage payments in a cash reserve. A simple bank savings account should get the job done - just make sure to bring proof of the account when you're applying for a jumbo loan.

 

Have your target home appraised:

Lenders may also require you to have the home you're buying appraised by a professional home appraiser to determine the current value of a property (by someone other than the seller.)

 

Where to Get a Jumbo Loan:

Mortgage loan borrowers can find jumbo loans at right here at LoanGIANT.

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Platinum Non-QM Jumbo Home Loans

Credit scores starting at 660

Up to 95% LTV, No MI

Non-QM Platinum Jumbo mortgage program is a competitively priced product for borrowers who just miss qualifying under Prime Jumbo guidelines. Stop losing deals because other lenders only offer Prime Jumbo. Our non-QM Platinum Jumbo loan allows our clients to help more Jumbo borrowers.

Your borrower may not be Prime – but they could be Platinum!

• Loans up to $3 million, Minimum loan of $250,000

• Four years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu

• Owner-occupied, second homes, and non-owner occupied

• Purchase and cash-out or rate-term refinance

• Full doc only

• 40 year fixed interest only available

• One year tax return program

• Non-warrantable condos allowed

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Portfolio Select Non-QM Jumbo Home Loans

Credit scores starting at 600

Up to 90% LTV with no MI

Credit worthy borrowers who have recovered from credit events no longer have to wait seven years to purchase or refinance! Our full doc Portfolio Select mortgage loan allows just one year seasoning for foreclosure, short sale, deed-in-lieu and just two years seasoning for bankruptcy. Capture more business and help those borrowers shut out of Agency guidelines. This full doc loan solution helps more borrowers achieve their financial goals through a home purchase or refinance. 

• Loans up to $2.5 million

• One year seasoning for foreclosure, short sale or deed-in-lieu

• Two years seasoning for bankruptcy

• Purchase and cash-out or rate-term refinance

• Owner-occupied, second homes, and investment properties

• Up to 50% DTI

• Gift funds allowed

• 40 year fixed interest only available

• Non-warrantable condos allowed

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Asset Qualifier Non-QM Jumbo Home Loans

Credit scores starting at 700

Up to 75% LTV

Asset Qualifier loan product is for borrower’s to qualify using their liquid assets. We do not require employment, income or DTI to justify ability-to-repay. We qualify based on required assets that meet seasoning requirements. We have helped retirees, underserved self-employed, divorced with no income, and other borrowers with required seasoned assets to purchase or refinance. This easy to close loan is another solution helping borrowers with their home loan needs who could not under Agency guidelines. 

• Loans up to $3 million, Minimum loan of $250,000

• No employment, no income, no DTI

• Rates are 30-year fixed

• Five years seasoning foreclosure, short sale or bankruptcy

• Primary residence, purchase or refinance

• Interest only program available

• Non-warrantable condos allowed

• All assets must be sourced and seasoned for a minimum of six months

• Required assets: Loan amount, recurring monthly debt multiplied by 60 months, funds to close and six months reserves

• Borrowers must have at least $500,000 in post-closing assets.

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Prime Jumbo Non-QM Home Loans

Credit scores starting at 660

Up to 90% LTV, No MI

Prime Jumbo mortgage product is a competitively priced loan option for borrowers purchasing homes outside of conforming limits. Borrowers who cannot qualify under GSE guidelines now have more options with us. Those who miss Prime Jumbo qualifications can quickly be moved to our Platinum Jumbo product which is also a competitively priced option. Our Jumbo program helps you save more deals!

• Loan amounts to $3 million (minimum $1 over conforming limits)

• Seven years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu

• Owner-occupied, second homes, and non-owner occupied

• Purchase and cash-out or rate-term refinance

• DTI up to 43%

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Agency Mortgage Conventional Non-QM Home Loans

Credit scores starting at 660

Up to 95% LTV/CLTV, with MI

• Loans up to conforming limits (high balance case by case)

• Owner-occupied, second homes, investment

• Competitive pricing with quick turn times

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Self Employed Bank Statement Jumbo Home Loans

Credit scores starting at 600

Up to 90% LTV, No MI

Bank Statement mortgage program is the perfect option for self-employed borrowers who need an alternative method to show the true cash flow of their business. Borrowers do not have to own 100% of the business. Self-employed borrowers represent an underserved market in the mortgage industry. Our Bank Statement program provides a loan solution to help underserved credit-worthy self-employed borrowers who otherwise would not qualify for a home loan.

• Loans up to $3 million with a minimum of $150,000

• 12 or 24 months business or personal bank statements

• Two years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu

• Rates are 30-year fixed

• Two years self-employed required

• Borrowers can own as little as 50% of the business for business bank statements and 25% for personal bank statements

• Purchase and cash-out or rate-term refinance

• Owner-occupied, second homes, and non-owner occupied

• 1099 option available

• 40 year fixed interest only available

• Most loans will be qualified on an expense factor of 50%. Companies with a lower expense factor will require a statement from a third party CPA or tax preparer. (Some industries with traditionally higher expense factors will be underwritten with a 70% expense factor.)

• Non-warrantable condos allowed

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1099 Income Loans

Credit scores starting at 600

Up to 90% LTV, No MI

Our 1099 income loan option is for underserved self-employed borrowers who are 1099 workers. Many freelancers, contractors, gig economy workers or other self-employed borrowers who file using W-9s cannot qualify for a mortgage under Agency guidelines.
These underserved borrowers can use 1099 earning statements in lieu of tax returns to qualify for a mortgage. Our 1099 Income loan is an alternative loan solution that helps many self-employed 1099 earners achieve homeownership. 

• Maximum LTV 90% with 700 score

• Maximum LTV 80% with 640 score

• Loans up to $3 million, Minimum loan of $150,000

• No tax returns are required

• Most recent one or two years 1099 plus year to date earning statement allowed

• Year to date earnings are verified from earning statement, paystubs, or bank statements

• 1099s must be from a single employer

• Borrower must be self-employed working for the same employer for two years

• Owner-occupied, second homes, and non-owner occupied

• Purchase and cash-out or rate-term refinance

• Two years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu

• Non-warrantable condos allowed

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Foreign National Home Loans

Maximum LTV of 70%

Maximum LTV of 65% for cash out

No Foreign or U.S. credit needed

This mortgage product is for foreign nationals wanting to purchase or refinance a home in the United States. This is a DSCR program with a 1:1 ratio on cash flow. This means that this loan is incredibly easy to do – no income or U.S. credit required to qualify.

• Minimum loan amount of $75,000

• Maximum loan amount of $1.5 million

• A DSCR program with a 1:1 ratio on cash flow

• Assets sourced and seasoned for 60 days - must be in a U.S. FDIC insured bank for a minimum of 30 days

• 12 months reserves required and must be in a U.S. bank

• ACH auto-payment is required

• No sanction listed countries allowed and will not lend in Osceola County

• Cannot reside in the United States

• Must have an eligible Visa: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2

• No gift funds allowed

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SmartEdge

An attractive jumbo mortgage for those who are unable to secure traditional lending due to a recent credit event or looking to purchase or refinance a non-warrantable condo.

SmartEdge provides non-traditional features and flexible guidelines such as alternative income qualification and interest-only payments.
This loan product is attractive jumbo mortgage option for those who are unable to secure lending due to a recent credit event or looking to purchase or refinance a non-warrantable condo.

Key Features and Benefits:
For borrowers who don’t qualify for standard jumbo loans

• Credit scores as low as 660 FICO

• Up to $3 million loan amounts

• Can have one late mortgage payment over the last 12 months

• DTI up to 50%

• 30-year fixed-rate and 30-year interest-only fixed rate terms available

• 5/6, 7/6, 10/6 ARMs with interest-only options

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SmartSelf

A smart option for self-employed borrowers seeking the home financing they need and wish to use bank statements to qualify.

SmartSelf allows self-employed individuals to use 12 or 24 months’ personal or business bank statements to support their income in qualifying for a mortgage.

Key Features and Benefits:

• For borrowers who can support their self-employed income with bank statements

• Income is calculated by averaging deposits shown on bank statements

• Up to $3 million loan amounts

• Can have one late mortgage payment over the last 12 months

• 30-year fixed-rate and 30-year interest-only fixed rate terms available

• 5/6, 7/6, 10/6 ARMs with interest-only options
  SmartSelf is a smart option for self-employed borrowers seeking the home financing they need and wish to use bank statements to qualify.

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SmartVest

A smart option for experienced real estate investors with complex finances. Finance your next investment property owned for business purposes.

SmartVest offers investment property financing with flexible guidelines and attractive non-qualified mortgage features such as interest-only options.

Key Features and Benefits:

• For borrowers who are experienced real estate investors looking to purchase investment properties

• Income used to qualify based on cash-flows from property owned

• Up to 20 financed properties allowed

• No tax returns or tax transcripts required

• No debt ratio calculation required

• 30-year fixed-rate and 30-year interest-only fixed rate terms available

• 5/6, 7/6, 10/6 ARMs with interest-only options

SmartVest is a smart option for experienced real estate investors with complex finances. Finances your next investment property owned for business purposes.

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Investor Cash Flow

Credit scores starting at 600

Up to 80% LTV

Investor Cash Flow mortgage program allows your clients to qualify based on rental analysis to determine property cash flow. No personal income required to qualify. This saves you from submitting complicated income statements and tax returns.

• Loans up to $1.5 million, Minimum loan of $75,000

• Qualification based on property cash flow − Minimum DSCR 1.0

• No DSCR needed with minimum 700 FICO and max 75% LTV

• No personal income or employment information required

• Properties can be in LLC’s name

• No limit on total number of properties

• Purchase and cash-out or rate-term refinance

• 40 year fixed interest only available

• Non-warrantable condos allowed