Jumbo loan down payment requirements have recently relaxed across Michigan as the housing market continues to expand. In fact, most home buyers can now borrow up to $2,000,000 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 $484,350 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 at Ph: 800-871-2636 anytime with questions. You can also simply submit the Request Contact form at the top of your screen.
- 5% down payment up to $2,000,000 loan amounts.
- Approved borrowers with 10% down payment can finance up to $3,000,000.
- 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.
- Four months of payment reserves (savings) often required.
- Fixed rate and ARM mortgage terms available for all Jumbo programs.
- Single loans and combo 80/15/5 mortgages 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 submitting the Request Contact form ( top of the screen) or by calling ph: 800-871-2636
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