November 20, 2017

Tip of the Day – JUMBO Financing

We recently received a purchase inquiry from Yelp regarding a Jumbo ($700K-$800K) mortgage product.  The buyer learned that many banks/lenders are unable to qualify a borrower with a 15% down payment at that purchase price.  Those banks/lenders had many requirements such as minimum down payments of 25% and maintaining minimum assets of 12-24 months of mortgage payment reserves.

Our solution: Our lending relationships allowed us to structure a financing program which consists of a 1st fixed rate mortgage and 2nd mortgage. 

Benefits to the Borrower:

  • Reduced down payment of 15% as opposed to 25%
  • No Mortgage insurance (MI)
  • Competitive Rate on 1st Mortgage—now an agency conforming loan amount
  • Competitive Rate on 2nd Mortgage—HELOC/Fixed Rate
  •  1st Mortgage Fixed Rate—not an Adjustable Rate Mortgage (ARM) typically structured for Jumbo Financing

This is a great starting point in understanding 1st and 2nd combo loans for jumbo financing.  Please contact us to discuss your jumbo financing needs.

Hire The Right Team. How Can We Assist You?

(206) 219-3088

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