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
  • Avoid JUMBO RATES
  •  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.

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