Posted on: 05th Aug, 2007 06:07 pm
I am considering the purchase of a house in the $3.5 million range.
I have excellent credit with FICO's all above 750 and no negative information of any kind.
I have one previous mortgage on my credit reports for $500k that I paid off in full 8 months after taking the mortgage.
My question is regarding how much down payment I will need to secure a Super Jumbo Mortgage of $3 million+.
Like many people in my tax bracket I use various accounting methods to minimize taxes and protect my income. Accordingly, I will need to secure a stated income mortgage.
With my excellent credit, can someone give me their opinion as to what kind of down payment I'll be making to secure the mortgage?
Your input is appreciated.
I have excellent credit with FICO's all above 750 and no negative information of any kind.
I have one previous mortgage on my credit reports for $500k that I paid off in full 8 months after taking the mortgage.
My question is regarding how much down payment I will need to secure a Super Jumbo Mortgage of $3 million+.
Like many people in my tax bracket I use various accounting methods to minimize taxes and protect my income. Accordingly, I will need to secure a stated income mortgage.
With my excellent credit, can someone give me their opinion as to what kind of down payment I'll be making to secure the mortgage?
Your input is appreciated.
Hi Livefromney,
A super jumbo loan is a loan for $1million or more. The lenders classify these loans as risky prospects, regardless of the creditworthiness of the borrower. But as far as the down payment program is concerned, it varies from lender to lender. One lender may ask for a higher down payment considering the larger amount of loan, while another may not require no down payment.
Generally, if you make a down payment of 20% on the loan, then you will face a lesser burden on purchasing the loan amount. It will also help you to avail loans at lower interest rates and thus will save your money. And you may also be able to benefit from the tax deduction facility under the PMI.
There are many ways in which you can make the down payment. You can consider either of the following ways:
a) Withdraw money from IRA: Under the laws set up by Internal Revenue Service, you can finance your down payment by withdrawing funds up to $10,000 from your retirement account. It is easy to qualify for such facility provided if you have not purchased a principal residence during 2 years before the purchase of the present property.
b) Gift assistance: You can also get the down payment amount by accepting gift funds from relatives, or friends. But the lender in this case requires you to submit a gift letter from the source as a proof of the gift funds.
c) Assistance from Government, state agencies and non-profit companies: There are several local and state agencies which conduct bond programs that provide borrowers with cash required for making down payments.
A super jumbo loan is a loan for $1million or more. The lenders classify these loans as risky prospects, regardless of the creditworthiness of the borrower. But as far as the down payment program is concerned, it varies from lender to lender. One lender may ask for a higher down payment considering the larger amount of loan, while another may not require no down payment.
Generally, if you make a down payment of 20% on the loan, then you will face a lesser burden on purchasing the loan amount. It will also help you to avail loans at lower interest rates and thus will save your money. And you may also be able to benefit from the tax deduction facility under the PMI.
There are many ways in which you can make the down payment. You can consider either of the following ways:
a) Withdraw money from IRA: Under the laws set up by Internal Revenue Service, you can finance your down payment by withdrawing funds up to $10,000 from your retirement account. It is easy to qualify for such facility provided if you have not purchased a principal residence during 2 years before the purchase of the present property.
b) Gift assistance: You can also get the down payment amount by accepting gift funds from relatives, or friends. But the lender in this case requires you to submit a gift letter from the source as a proof of the gift funds.
c) Assistance from Government, state agencies and non-profit companies: There are several local and state agencies which conduct bond programs that provide borrowers with cash required for making down payments.
Hello Livefromny,
The rates on jumbo mortgages have gone higher since the last week of July, so it will be quite difficult to qualify for loans more than $417000. So, it's better that you think twice as rates are up even though rates on conforming loans have slipped downwards.
The rates on jumbo mortgages have gone higher since the last week of July, so it will be quite difficult to qualify for loans more than $417000. So, it's better that you think twice as rates are up even though rates on conforming loans have slipped downwards.
TO: John Smith
Stated income loans can be very state and county specific due to local banks who use their own money in the area they have bank branches.
In what state would your $3.5MM purchase be?
Stated income loans can be very state and county specific due to local banks who use their own money in the area they have bank branches.
In what state would your $3.5MM purchase be?
Hi Guest,
Stated income loans are not easy to find in this market. Only a few lenders in specific areas originate such loans. Your credit score is excellent. So, from credit point of view, it will not be a problem for you. However, you could be asked to put down 30% of the purchase price to get the loan. But the real problem is finding a lender that still offers stated income loans in this economy.
Stated income loans are not easy to find in this market. Only a few lenders in specific areas originate such loans. Your credit score is excellent. So, from credit point of view, it will not be a problem for you. However, you could be asked to put down 30% of the purchase price to get the loan. But the real problem is finding a lender that still offers stated income loans in this economy.
Super Jumbo Stated Income Loans still do exist. I just locked in a lsuper jumbo mortgage loan for someone at a rate below 6%. The LTV requirements and the rates will vary depending upon the lender.
