Luxury Homes Purchases Just Became More Affordable!
Luxury home purchases just became more affordable with the new jumbo loan products allowing a buyer to borrower up to 90% of the homes value. For well qualified buyers this increase in the amount that can be borrowed allows them to keep more of their cash in the bank. The new jumbo loans allowing the 90% loan to value ratio can range from $418,000 to 1,500,000 for those who qualify. We should also mention that not only does the borrower have to qualify, but so does the property but we are going to look at the various rules here in this post.
This loan product allows for the purchase of a first or second home. It does not allow for the purchase of an investment property.
Primary Home Purchase
Second Home Purchase
Eligible Property Types
The following property types are eligible for jumbo financing up to 90% of the appraised value of the home in a purchase transaction. It is a short list and by no means exhaustive as we at Phoenix Urban Spaces specialize in real estate, specifically helping buyers and sellers with the “Coolest Condos and the Hottest Homes”!
1-2 Unit Owner Occupied Properties
1 Unit Second Homes
FNMA warrantable Low/Mid/High-Rise Condominiums – All projects must be fully reviewed.
Planned Unit Development (PUDs) o- No project review is required for attached or detached PUD
Again this list is just the short list, for those who desire more information you will need to consult a licensed mortgage planner.
3-4 Unit Owner Occupied Properties
2-4 Unit Second Homes
Unwarrantable or Limited Review Condominiums
Permanent Resident Aliens – some restrictions apply
Non-Permanent Resident Aliens – some restrictions apply
Permanent and Non-Permanent Resident Aliens who do not meet the eligibility requirements
Revocable or Irrevocable Trusts
Limited partnerships, general partners, corporations, and limited liability companies
Borrowers with only an ITIN (individual taxpayer identification number)
First time home-buyers
Debt to Income Requirements and Reserve Requirements
The debt to income ratio for borrowers who seek to borrow up to 90% is at a maximum of 33%. They also have Net Reserve Income requirement of not less than $3,000.00 monthly and PITI post close reserve requirements of 36 months minimum held in non-retirement accounts. Seller’s concessions on this product also do not allow for any seller concessions. For this product it is required to have real estate taxes and home owners insurance escrowed and included in the total payment to the lender.
Roberta Candelaria, Broker of Phoenix Urban Spaces, is known for being the foremost expert on the Phoenix Valley’s most exclusive and exceptional urban communities. She can help you find just the right luxury home to take advantage of this new affordable jumbo loan product. As a Central Phoenix Realtor, Roberta has extensive experience finding distinctive and unique living options in and around Phoenix and is always happy to share her knowledge and expertise with each and every client.With rates still at historic lows and the fact that this loan product requires no mortgage insurance, purchasing a luxury home whether a first or second home has never been more affordable.
Contact Roberta Candelaria today if you want to work with the best in Central Phoenix.