For a certain segment of home buyers, super jumbo mortgages are the financing product used to purchase or refinance a luxury home. Homes for this type of mortgage product tend to be in very desirable locations like those with hillside city views, on the beach, or in gated communities. Affluent areas in California, Florida and throughout the country are ideal for super jumbo financing. These loans are commonly over $1 million and can reach in excess of $10 million in places like Beverly Hills, San Francisco, and Newport Beach in California, Naples, or Miami. Inquire today to see if you meet the requirements for a super jumbo home loan.
Super Jumbo Mortgage Down Payments
There's the popular 10-percent down program up to $2.5 million, 5 percent down to $1.5M, or 30-35% down on a $5M home. When stuctured properly, a first and second mortgage combo can help borrowers dramatically reduce their monthly payment by thousands per year.
While these loan products are available in all 50 states, high net worth individuals are more likely to get a super jumbo loan in California since greater than 25% of the homes in the state have an appraised value over one million dollars. This is especially true in Newport Beach, La Jolla, San Francisco, West L.A. and adjacent coastal beach cities.
Sales of properties worth between $750,000 and $1 million are up 38.7 percent over a year ago; $1 million-plus property sales are up 25.7 percent, based on data from the National Association of Realtors.
Some of these larger-sized loans require 10-30% down on homes priced from $1 mllion to $4 million. One great alternative available to borrowers is that they are able to still be approved by collateralizing liquid assets or using an assst depletion. This is typically done by pledging one's portfolio of stocks and bonds although there is no transfer of ownership.
As of 7/28/2016, popular financing programs include:
10% down to $2,500,000
15% down up to $3 Million; homes valued up to $2.9 Million
30-40% down on homes priced from $3.5 to $5 Million
Available in Arizona, California, Colorado, Florida, Texas.
**As of 9/28/2016 new programs have become available in other states. Borrowers are subject to credit and underwriting approval. Not all borrowers will be approved for financing.
Since lenders are taking on more risk, the underwriting process is a lot stricter. Therefore, borrowers should have impeccable credit (over 720), although it is not the only factor for getting an approval or rejection.
It is not uncommon for the typical super jumbo borrower to be employed with a successful corporation as the president, CEO, COO, CTO, or a high-ranking executive within the company.
It's very important that you deal with a loan expert who has years of knowledge through experience (i.e. closed transactions) in dealing with high-end financing. It is essential component to finding the best mortgage options suitable for your needs. Check with a jumbo mortgage lender now!