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.