New Jumbo Loan Program For Homes Worth More Than $1 Million
Stearns Lending, LLC, a leading provider of residential mortgage lending services in Wholesale, Retail, Strategic Alliances and Consumer Direct sectors, introduces an new mortgage product to help borrowers secure financing for homes worth more than $1 million. Whether a homebuyer is upgrading to a larger home or lives in an area with high property costs, the new Gold Select 90 mortgage allows qualified first-time homebuyers to borrow up to $1 million (larger amounts available in California and New Jersey) and qualified experienced buyers to borrow up to $1.5 million dollars.
This 30-year fixed rate financing option, available to Retail and Strategic Alliance customers, is a variation of what is commonly called a Jumbo loan and must be used for the borrower’s primary residence. In addition to higher borrowing limits, homebuyers are not required to purchase Private Mortgage Insurance (PMI), which translates to lower payments. (PMI protects the lender; borrowers are still expected to carry property insurance.)
Although many conventional mortgages call for a 20% down payment, this Jumbo loan only requires 10%, which expands the opportunity for people who can afford a larger monthly payment but don’t have large cash reserves. In addition to other program guidelines, eligible borrowers must have a minimum credit score of 740 (for first-time buyers) or 720 (for experienced buyers).
For more than 28 years, Stearns has been helping employees, borrowers and business partners to reach their goals by successfully exceeding expectations and leading the industry with innovation and efficiency. To learn more about Stearns, go to stearns.com and joinstearns.com.