Michigan home buyers now have the opportunity of financing higher cost luxury homes with only 5% down payment. Starting now up to 95% financing is available for eligible homebuyers that meet the qualifying standards listed below. Jumbo loans are often necessary for borrowers financing mortgage amounts over the conventional loan limits of $548,250 in Michigan.
In recent years jumbo loans usually required 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% down and 5% down financing options for approved buyers. This is great for buyers that want to purchase in higher costs locations like Ann Arbor, Grand Rapids, Lansing, Detroit, etc. Buyers will want to ensure they meet the jumbo standards listed below before applying:
- 5% down 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 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 buyers retirements accounts (IRA, etc)
- Buyers need to fully document their income over the previous two years. Tax returns, etc.
- 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 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 that 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, Kalamazoo, Wyoming, Southfield, Rochester Hills, Michigan Jumbo 5 Percent Down