Michigan home buyers now have the opportunity to finance higher-cost homes with up to 95% financing. The 5% down payment program is available for eligible homebuyers who meet the qualifying standards listed below. Jumbo loans are often necessary for borrowers financing mortgage amounts over the conventional loan limits of $766,550 in Michigan.
In recent years jumbo loans usually require a 20% down payment to obtain approval. Even today that remains the case for many large banks and credit unions. However, a select few lenders are opening up more 10% and 5% down financing options for approved buyers. This is especially helpful for professionals in Grand Rapids, Lansing, Detroit, etc that may have sufficient qualifying income, but lack the sizable down payment often required.
Buyers will want to review the jumbo program requirements listed below before applying:
- The Jumbo financing only applies to owner-occupied and second homes. The property must be a single-family, condo, townhome or new-construction spec home. No raw land, lot loans, or build on-site financing permitted.
- Borrowers applying for the 5% down option must have a credit score of 700 or above. * Borrowers that have experienced financial hardships in recent years like bankruptcy, short sales, etc, may face additional requirements.
- Buyers will need payment “reserves” after the down payment and closing costs are made. The exact amount will be determined based on the loan amount, credit, and down payment. 3-6 months reserves are generally customary and can be satisfied from buyer’s retirement accounts (IRA, etc)
- Buyers need to fully document their income over the previous two years. Tax returns and W2’s if applicable.
- 95% loan to value – loan limit is $2,000,000
- 90% loan to value – loan limit is $3,000,000
Low down payment jumbo loans can offer many benefits:
- Lower down payments – up to 95% financing
- No monthly mortgage insurance “PMI” costs
- Combo loan options like 80/15 or 80/10 along with single loan options depending on property state
- Secure fix and adjustable rate terms are available
- Historic low-interest rates
- Flexible refinance options up to 95 percent for homeowners that already have a jumbo loan, or want to convert from an ARM to Fix Rate.
Applicants who have questions can reach out to us by calling Ph: 800-962-0677 7 days a week, or just submit the Quick Contact form on this page. Also, be sure to view the helpful video below and use the Jumbo payment calculator and other helpful tools on the website.
Serving buyers nationally including MI: Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, Dearborn, Livonia, Westland, Troy, Farmington Hills, and Kalamazoo.