Mortgage programs for loans between one and forty million dollars are called super jumbo mortgages (or, sometimes, mega jumbo mortgages). As you know if you’ve been reading this blog, jumbo mortgages are loans that exceed the Fannie Mae and Freddie Mac conforming loan amount limits. You may hear jumbo loans and super jumbo loans referred to as “non-conforming” jumbo loans or super jumbo loans—that’s why.
Conventional lenders are comfortable writing conforming, non-jumbo loans because Fannie Mae and Freddie Mac will buy these loans as long as they meet some basic underwriting guidelines. Lenders are also fairly comfortable writing regular jumbo loans, and super jumbo reverse home loans up to about one million dollars. But once the mortgage exceeds one million, most lenders become extremely conservative, requiring a long list of criteria for loan qualification.
And in fact, super jumbo loans may require more verification’s than smaller loan amounts, as well as more reserves, higher credit scores, and a higher down payment: there’s a great deal more risk involved because of the numbers, and that risk can be mitigated by having higher down payments and/or more reserves and more scrutiny of your financial past and present. Moreover, super jumbo home prices can be more subjective, and the properties involved may not be as easily sold to a mainstream borrower as a conventional property, so many lenders may require multiple appraisals on a jumbo mortgage loan. Finally, average interest rates on super jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.
Despite this conservatism in lending, it’s quite possible to secure a super jumbo mortgage in Florida, Georgia, or California, and we’re ready to help.
It takes a special kind of expertise to source these super jumbo loans for borrowers in the one- to 40-million dollar range, and at Avrus Financial and Mortgage, we have that expertise. The reality is that there are more wealthy people than ever needing million-dollar loans. We know that in the United States there are over nine million people who are millionaires, and over one million households with net worth over five million… and these people need to be able to borrow money to purchase property. We’re able to work with you to find just the right combination of requirements for your specific situation, and we can sometimes lower your down payment if you have income-producing or liquid assets. We’ll get to know you and find the mortgage that suits you best.
Why not ask us how today?
