Jumbo loan down payment requirements have expanded across Michigan as the housing market remains strong. In fact, well-qualified home buyers can now borrow up to $1,500,000 with only a 5% down payment. This is great for those purchasing in higher costs neighborhoods in Lansing, Ann Arbor, Grand Rapids and Detroit.
Please note that Michigan jumbo loan 95% financing only applies to primary & second home purchases. Investment homes will require a higher down payment of 20 percent or more. Below we discuss all the latest requirements and what you need to know before applying. Before we do that, let’s discuss the basics of the Jumbo mortgage.
Loan amounts are considered “Jumbo” when they exceed the conforming loan amounts set by Fannie Mae or Freddie Mac. Conforming loan limits top out to $832,750 for most of the country, but some high-cost regions are higher. Also known as a non-conforming loan, a jumbo loan often carries a slightly higher interest rate and may require a larger down payment and lower loan-to-value (LTV) ratio than a conventional mortgage.
The loan process (pre-approval, underwriting, etc) is pretty much the exact same as conventional loan types. Michigan buyers looking to apply for a Jumbo loan can read the latest requirements below:
Please contact us today, simply submit the Request Contact form at the top of your screen.
- 5% down payment up to $1,500,000 loan amounts.
- Approved borrowers with 10% down payment can finance up to $2,500,000.
- Credit scores must be a minimum of 700. No previous financial hardships in the last five years.
- Your monthly mortgage payment with taxes, etc, should not exceed 38% of your gross income.
- Three months of payment reserves (savings) are often required.
- Fixed-rate and ARM mortgage terms are available for all Jumbo programs.
- Single loans and combo 80/15/5 mortgages are available with no PMI.
- Attractive Refinance options for those looking to switch to a fix rate term, or cash out equity.
- Same day Jumbo loan pre-approvals, closings in as little as three weeks.
Borrowers can contact us anytime by calling or just submit the Request Contact form
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