Jumbo Mortgage 10% Down w/ No MI up to 2 Million
How to Qualify for a Jumbo Mortgage
While much of the underwriting process is the same as that of a traditional mortgage, there are some differences. Most lenders require the property to be appraised twice by two different appraisers rather than the single appraisal needed for a conventional mortgage. A borrower must also have a higher credit score—more lenders require a minimum score of 700. Borrowers will also need to have a debt-to-income ratio that is no higher than 43% and will need to show that they have enough funds on hand to make their mortgage payments for anywhere from six months to a full year. Some lenders have even tighter debt-to-income ratios
The Down Payment and Other Differences
Another major difference between a conventional mortgage and a jumbo mortgage is the size of the down payment. Jumbo mortgages require a minimum payment, and it may be higher than that of a standard mortgage. In some cases, the down payment can be as much as 30% of the total home cost. Most lenders require at least 20%.
Most jumbo mortgages are adjustable-rate loans rather than fixed-rate mortgages, but the interest rates on these loans are often fairly low, at least in the beginning. Many are 5/1 mortgages, which means that the interest rate will be locked in for five years, then may change every year following that.
In most cases, only the biggest lenders offer jumbo mortgages. It may be difficult to find small banks or other financial institutions that offer jumbo mortgages simply because of the large amount of money involved. Most lenders will also only make jumbo mortgages for the borrower’s primary residence, not a second home or an investment property.