What does the profile of a Jumbo borrower look like?

A Jumbo borrower is anyone purchasing a home outside of the conforming limit as set by the Federal Housing Finance Agency. Home prices are different across the country, and the limits for conforming and non-conforming homes can be too. Currently, the limits are $726,200 for a single family home and can go up to $1,089,300 depending on the state. Because of this, it is hard to pinpoint exactly the demographic of a Jumbo borrower. Generally, they are created for affluent borrowers wanting luxury homes. However, many average borrowers in high-cost areas such as New York City, Los Angeles or San Francisco may not have an option other than a Jumbo loan.

Premier Home Financing works with brokers and their Jumbo borrowers every day providing solutions that get to the closing table quickly.

Why would they require non-QM to qualify for a mortgage?

Jumbo loans are non-Agency or non-QM loans that cannot be sold to government agencies such as Fannie Mae or Freddie Mac. Jumbo loans are held by private lenders or sold off to investors. At Premier Home Financing, we service transactions for the life of the loan as the end investor.

There are two types of Jumbo loans – Prime and Non-QM. Not all Jumbo borrowers can qualify for a Prime rate because the guidelines are tighter. If that is the case, they might be eligible for a non-QM Jumbo loan. Premier Home financing has a non-QM offering through our wholesale connection of wholesale lenders called Platinum Jumbo. It is a great full doc option that is easy and quick to close. We receive calls every day from borrowers asking us to save a deal because their borrower was turned down for a Prime Jumbo loan.

Realtors and borrowers who need these type of loans know to call us first to ensure a quick close without delays. We can determine from the start which loan product to use to avoid a delay in closing.

What are non-QM mortgage options for Jumbo borrowers?

• Platinum Jumbo – A full doc product for loans up to $3 million. Allows four years out of foreclosure, bankruptcy and deed-in-lieu. A one year tax return option is available as long as it is the most recent year.
• Portfolio Select – A full doc product for loans up to $2.5 million. Allows only one years out of foreclosure, short sale and deed-in-lieu and two years for bankruptcy. A one year tax return option is available as long as it is the most recent year.
• Bank Statement – For self-employed borrowers without tax returns to qualify. Loans up to $3 million.  Use 12 or 24 months personal or business bank statements to determine income. Two years seasoning for foreclosure, bankruptcy, short sale, or deed-in-lieu
• Investor Cash Flow – For real estate investors to qualify without tax returns and employment information. Loans up to $1.5 million. Qualifies based on rental analysis to determine cash flow of property.
• Down Payment Options – As low as 10% down depending on the mortgage product.