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 1^st fixed rate mortgage and 2^nd mortgage. 

Benefits to the Borrower:

• Reduced down payment of 15% as opposed to 25%
• No Mortgage insurance (MI)
• Competitive Rate on 1^st Mortgage—now an agency conforming loan amount
• Competitive Rate on 2^nd Mortgage—HELOC/Fixed Rate
• Avoid JUMBO RATES
•  1^st 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.