SLG Has JUMBO Loans Up To $10,000,000
If you’re buying an expensive high end home, unless you’ve decided
to pay cash, you’ll need a loan that exceeds conforming limits.
Specialty Lenders Group offers JUMBO Loans up to $10,000,000.
Jumbo Home Loans are mortgage products that exceed conforming loan limits. Conforming loan limits vary by county, in accordance with the cost of real estate in that locale. Consequently, the minimum Jumbo Loan amount varies as well. For Example, in our home county of San Diego, the conforming loan limit for 2022 is $879,750. Loan amounts of $879,751 or higher are defined as Jumbo.
Here are a few thing you should know about Jumbo Loans:
- In the past, down payments on fully documented Jumbo Loans often ranged from 20% – 30%. When purchasing a five or six million dollar home that can be a significant capital outlay. Today, Specialty Lenders Group offers Jumbo products requiring down payments as low as 10% – 15%, or half of the previous norm.
- Qualification guidelines are more strict because of the higher risk involved.
- Underwriters are looking for stellar credit, stable income, and manageable debt (debt-to-income ratio of 43% or less, preferably closer to 36%).
Equally, and perhaps more important, is strong reserves (at least 6 months, but more likely 12 or more). In the event of an unforeseen circumstance that restricts the borrower’s cash flow for a period of time, the lender wants to know there’s sufficient reserves to make the mortgage payment. - Appraisal guidelines are also more strict. Appraisals are not waived on Jumbo Mortgages, are virtually always reviewed, and two appraisals are not uncommon.
- Jumbo interest rates are usually higher than rates on conforming loans, sometimes the same and occasionally lower, depending on a number of factors.
- The HENRY acronym fairly describes many Jumbo Loan applicants (High Earners Not Rich Yet).
- Interest is only deductible on the first $750,000 of the mortgage. For example, assume you purchase a $6,000,000 home, put 15% ($900,000) down and obtain a $5,100,000 mortgage, amortized for 30 years, at a fixed rate of 3.6%. During the first year, rounding, you’ll pay $182,023 in interest, but only $27,768 of that is deductible (interest on the first $750,000). Moreover, state and federal tax deductions are now limited to $10,000. Disclaimer: These numbers are for illustration purposes only and do not constitute tax advice. Please confer with your tax attorney, CPA, or other tax professional before obtaining any type of mortgage.
To find out more about SLG’s Jumbo Loans, please contact us today.
Call 855.SLG.FUND (855.754.3863) or inquire below.
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