Low Down Payment on a Jumbo Mortgage
The jumbo property market in Texas is in much better shape than most markets around the country. However, sales are still slow in the upper end for a few reasons. But, one of the least discussed is the large down payment and reserve requirements for jumbo mortgages. The down payments required are generally 20%-25% of the purchase price. A large chuck of money on a 800,000 purchase. But, the limiting factor for a lot of would be buyers are the reserve requirement needed on top of the down payment. Reserves are defined as liquid cash left over after down payment and closing costs. Most lenders are requiring 12-24 months of Principal, Interest, taxes and insurance. Let’s assume a 800k purchase with 20% produces a Principal, Interest, Taxes and insurance payment of 5600. This means a 800k purchase requires at least 160k for the down payment and 67,200 in cash to meet the reserve requirement for a total of over 227k needed in cash.
Let’s compare that to the low down payment jumbo mortgage product offered by Hurst Lending in the Dallas-Fort Worth metroplex. For qualified borrowers, only 10% down is required for mortgage amounts up to 875K. Only 6 months of reserves are required. This cuts the cash you need in hand in half, from over 227k to 116k. By any one’s calculation, 116k is much easier to come up with than 227k. If you are in the market to buy a jumbo property or if you are marketing a jumbo property for sale, please contact firstname.lastname@example.org or call Jay Hurst at 214 824 2986 to learn how we can help.