Jumbo mortgage down payment requirements have started to be reduced in Michigan as the housing market continues to expand. In fact, many qualified home buyers can now borrow up to $1,500,000 with only a 3.5% 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 96.5% – 90% 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 at $647,200 for most of the country, but some high-cost regions are higher. Also known as a high balance loan, a jumbo mortgage 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:
For questions, please contact Jumbo Mortgage Source by calling Ph: 800-962-0677
- 3%-5% down payment up to $1,500,000 loan amounts.
- Approved borrowers with a 10% down payment can finance up to $2,500,000.
- Credit scores must be a minimum of 680-740 depending on the down payment amount. *No previous financial hardships in the last five years regardless of credit.
- Your monthly mortgage payment with taxes, etc, should not exceed 42% of your gross income.
- 3-6 months of payment reserves (savings) are required. *24 months required for max 96.5%
- 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 connect with us 7 days a week by calling Ph: 800-962-0677
Serving all of Michigan: Detroit, Grand Rapids, Warren, Lansing, Sterling Heights, Ann Arbor, Flint, Dearborn, Livonia, Westland, Troy, Farmington Hills, Kalamazoo, Wyoming, Southfield, Rochester Hills