Are Jumbo Loans available for borrowers who have less than 20% down?

The answer is yes, there most certainly are!

There are actually a number of different options available for borrowers who have as little as just 10-15% down. These options can vary depending on the how much the borrower is looking to finance.

For borrowers looking to finance $1MM or less, a down payment of just 10% is required. For the borrowers looking to finance over $1MM but no more than $2MM, a 15% down payment will be required. And for those borrowers looking to finance over $2MM and up to $10MM, a minimum down payment of 20% will be required.

Aside from the amount financed and the down payment there are a number of other factors that can dictate which options will be available. These factors are based primarily on the individual borrowers needs as well as their qualifications. For instance, in most cases a good to excellent credit score will be required. But there occasions were a lower credit score may be accepted. That is just as long as there are compensating factors. Income and assets also play a major roll in deciding which terms work best. Just remember that the more income and assets one has the more term options and opportunities they will have.

The terms offered with Jumbo are similar to standard conventional loans. There are adjustable (ARM) as well as long term fixed rate options. There are interest only payments. In some cases there are ever 40-year amortization. One of the biggest benefits to Jumbo financing is mortgage insurance is rarely required. And piggyback lines of credit are also available to help capture lower rates and payments while avoiding the high cost of mortgage insurance.

As great as it would be not everyone can afford or is willing to place a full 20% down. For those borrowers it is wise to understand all your options. Please contact me for further information.