Jumbo Loan Programs

Jumbo Loan Type

Conventional jumbo fixed rate loan

This program is designed for borrowers who require streamline processing and may have non-traditional credit histories or community savings. The program allows limited employment and asset verification documentation.

LOAN TERM 10 - 30 year terms available

MINIMUM LOAN AMOUNT
$417,001 – 1 Family Unit
$533,851 – 2 Family Unit
$645,301 – 3 Family Unit
$801,951 – 4 Family Unit

These numbers will vary over time. Please contact your mortgage broker for updated Jumbo Loan amounts.

ELIGIBLE PROPERTY AND OCCUPANCY TYPES
All eligible properties must conform to Funding America's guidelines.

• 1, 2, 3 and 4 unit detached and attached, primary residences
• 1 unit detached and attached second homes.
• Condominiums must meet guidelines.
• PUDs must meet guidelines.
• Cooperatives in the 5 Boroughs of NYC and Nassau, Suffolk, Westchester and Rockland counties are eligible for NYC Pilot guidelines
• Cooperatives in other areas of New York, New Jersey, Washington, DC and Maryland must meet Fannie Mae Type 1 guidelines

• Investment Property
• Manufactured Housing

• All borrowers must reside within the US.
• U. S. Citizens
• Permanent Resident Aliens
• Non-Permanent Resident Aliens
• Non-occupant Co-borrowers

Credit Requirements
Traditional and Non-Traditional. Non traditional must meet guidelines.
Mortgage or Rental Verification:

• Credit report showing mortgage payment history for twelve (12) months, or
• Year-End Mortgage Account Statement plus current year’s cancelled checks, or
• Original or certified true copies of cancelled mortgage/rental checks for the past twelve (12) months, or
• Verification of Mortgage sent by Lender, or
• Letter from the landlord for rental verification

Employment/Income Verification

An IRS Form 4506-T must be signed by the borrower(s) at application and again at closing for all LTVs and/or CLTVs greater than 80%.

Salaried Borrowers:

• Most recent computer generated paystub reflecting year-to-date earnings; OR, if a borrower works for a small business, then a letter from employer reflecting monthly income, year-to-date income, overtime, commission and bonus income, if applicable, is required. This letter must be on company letterhead and signed by an officer of the corporation.
• For all LTVs, an independent confirmation of the telephone number provided by the borrower as the employer’s telephone number and telephone verification of the borrower’s employment and income are required.
• A 2-year employment history is required.
  
  Self-Employed:
  • A D&B or LexisNexis ™ report is required for all loans and will be generated. If the D&B report is inconclusive or questionable, then a copy of the current business license is required
  • A letter from a CPA stating (see FOD Document #716 for sample):
  • Borrower’s business and NET personal income for the preceding 2-years,
  • Borrower has been self employed in the disclosed business, for no less than three (3) years,
  • The likelihood that the borrower’s income will continue at the then current level or is likely to increase, and
  • That there is no currently pending adverse action against the borrower, including but not limited to any legal action or business foreclosure, to the best of their knowledge.
  
  Rental Income
  • Subject Property - Rental income from 2-, 3- and 4-unit property is acceptable. The net rental income is calculated by taking the gross rental income indicated on the appraisal and deducting a vacancy factor of 25% or the most recent years Schedule E. Any negative amount must be added to the borrower’s monthly recurring obligations
  • Other Rental Property – Rental income is acceptable. The net rental income is calculated by taking the gross rental income indicated on the most recent lease(s), deducting a vacancy factor of 25% and the monthly PITI or the most recent years Schedule E
  
  Asset Verification
  • Assets for down payment, closing costs, prepaids and reserves must be fully documented. The most recent bank statement(s) verifying assets to close and two (2) month’s reserves, AND
  • A photocopy of the front and back of the Borrower’s cancelled earnest money check and bank statement evidencing the check has cleared (for Purchases only).
  • Recently deposited cash-on-hand will be acceptable as long as it is consistent with the borrower’s profile of not using conventional credit and banks.

  Gifts
  Gift funds are acceptable to pay closing costs, prepaids, reserves and excess down payment. The Borrower(s) must provide the minimum down payment requirement from their own funds.
  
  Qualifying Ratios

  • Housing Ratio: Maximum 38%
  • Debt Ratio (DTI): Maximum 50%.
  
  

  REFINANCE TRANSACTIONS

  For refinance transactions on a Jumbo Loan please contact your mortgage broker for up-to-date details.
  
  TEMPORARY BUYDOWNS
  • Maximum temporary buydown is 2/1 - borrower(s) qualified at the bought down rate
  • Buydowns are not permitted on any Cash Out Refinances
  • Borrower(s) must be qualified at the note rate on Second Homes
  APPRAISAL REQUIREMENTS
  • One (1) appraisal is required on loans of $1,000,000 or less regardless of location of property. Loans of $1,000,001 to $1,500,000 require one (1) full appraisal and one (1) field review in all areas. Jumbo Loans greater than $1,500,000 require two full appraisals. The lower of the two appraisal values will be utilized for LTV and loan amount calculations.
  • For cash out refinance transactions with loan amounts to $1,000,000 and cash back greater than $250,000 require one (1) full appraisal and one (1) field review appraisal. All cash out transactions with loan amounts greater than $1,000,000 require two (2) full appraisals.
  • The appraisal must be completed by a state-licensed and/or state-certified appraiser.
  • Any appraisals made “subject to repairs” will require a final inspection by the original appraiser.
  
  MORTGAGE INSURANCE
  Mortgage insurance is required for all jumbo loans with LTVs in excess of 80%.
  
  Genworth: Jumbo Loans will receive Limited Doc pricing.
  
  MGIC: Jumbo Loans will receive Limited Doc pricing.
  
  RMIC: Jumbo Loans will receive Limited Doc pricing.
  
  UGRIC:
  • Maximum of two jumbo loans insured for the same borrower(s).
  • Jumbo Loans will receive Limited Doc pricing

  I want to introduce you to an adjustable rate Jumbo Loan program that can also help you with your home mortgage needs. Please review the conventional adjustable Jumbo loan.

  JUMBO LOAN TYPE

  Conventional adjustable rate LIBOR indexed non-convertible mortgage with interest rate adjustments 37 (3/1 ARM), 61 (5/1 ARM), 85 (7/1 ARM) or 121 (10/1 ARM) months after the month of loan closing with subsequent adjustments 12 months thereafter. The ARMs offer payments of mortgage interest for the first 3, 5, 7 or 10 years. All options are available with or without a prepayment penalty. This product is full documentation only.
  
  These Jumbo A programs are ideal for financially savvy borrowers with prime credit characteristics who may
  • (1) prefer the security of a fixed payment over a shorter term, most likely due to their intentions not to own the property longer than the available fixed terms,
  • (2) like to maximize their tax deductibility,
  • (3) be purchasing a property in an appreciating market or
  • (4) choose to pay lower fees in exchange for a prepayment penalty should they decide to refinance within the penalty period.
  LOAN TERM
  • 10 - 30 years only (terms less than 30 years will be priced at the 30 year rate).
  • Interest only loans may not have a term less than 30 years.
  
  MAXIMUM LTV / LOAN AMOUNT PURCHASE AND NO CASH OUT REFINANCE TRANSACTIONS...
  Your mortgage broker can provide up-to-date LTV / Jumbo Loan amounts.
  
  MINIMUM JUMBO LOAN AMOUNT
  $417,001 - 1 Family Unit
  $533,851 - 2 Family Unit
  $645,301 - 3 Family Unit
  $801,951 - 4 Family Unit
  
  INDEX
  One-year London Interbank Offered Rate (“LIBOR”) which is the average of interbank offered rates for one-year U.S.dollar-denominated deposits in the London Market, as published in The Wall Street Journal.
  
  MARGIN
  2.25%
  
  INTEREST RATE CAPS
  • For all ARMs, two percent (2%) limitation on interest rate increase or decrease at each interest rate adjustment period.
  • For 5/1, 7/1 and 10/1 ARMs, a five percent (5%) limitation on interest rate increase or decrease applies to the first adjustment only.
  
  INTEREST RATE CEILING
  • For 3/1 ARMs, six percent (6%) over the initial rate.
  • For 5/1, 7/1 and 10/1 ARMs, five percent (5%) over the initial rate.
  
  INTEREST RATE FLOOR
  The interest rate floor will never be lower than the margin.
  
  INTEREST ONLY TERMS
  • For all ARMs, an interest only period equal to the initial fixed period followed by full amortization of the remaining balance for the duration of the loan
  • All interest-only ARMs will be qualified at the fully indexed, fully amortizing rate (FIFA). The FIFA rate is the greater of the note rate or current index plus margin, fully amortized over the loan term for interest-only ARMs.
  
  ELIGIBLE PROPERTIES
  All eligible properties must conform to Funding America guidelines:
  • 1-4 unit detached and attached, primary residences.
  • 1 unit detached and attached Second Homes.
  • 1-4 unit detached and attached, investment property.
  • Condominiums
  • PUDs must meet guidelines.
  • Cooperatives in NYC are eligible for Fannie Mae Pilot program guidelines and are restricted to the 5 Boroughs and Nassau, Suffolk, Westchester and Rockland counties. NYC co-ops not meeting the Pilot program parameters may be eligible if warranted to Fannie Type I guidelines. Cooperatives are also available in other areas of NY, NJ, DC and MD and must also conform to the Type I guidelines
  
  INELIGIBLE PROPERTIES
  • Investment Co-ops.
  • Manufactured Homes.
  
  UNDERWRITING HIGHLIGHTS
  All loans must conform to underwriting guidelines with the following allowances:
  
  Underwriting Options
  • Desktop Underwriter (DU) or Loan Prospector (LP) is required to be utilized for all loans up to $650,000 subject to the following:
  • The minimum credit scores as disclosed in the Maximum Loan/LTV grids;
  • Maximum LTV 80%;
  • Maximum DTI of 50%;
  • Income and asset doc waivers permitted;
  • Appraisal waivers are not permitted.
  • Limited Review Condo Warranties are eligible, (Please refer to Warranty Forms).
  • All jumbo loans must receive an “Approve” or “Accept”. “Ineligible” responses may be received on some transactions.
  These responses will be acceptable where permitted within this description.
  • The following interest only transactions may not be processed through Loan Prospector (LP) and must be processed through Desktop Underwriter (DU):
  • Owner Occupied 2-4 Units.
  • Investment Properties.
  • Co-ops and Second Homes.
  • Construction/Permanent
  • Caution, Refer, A-Minus and Expanded Approval responses are NOT eligible.
  • Manual/Traditional underwriting is required for all loan amounts greater than $650,000 and all LTVs in excess of 80%.
  • MI Contract Underwriting is permitted.
  • Delegated Underwriting is permitted.
  
  Documentation Options
  Full and Alternative only.
  
  Eligible Borrowers
  • All borrowers must reside within the US.
  • U. S. Citizens.
  • Permanent Resident Aliens.
  • Non-Permanent Resident Aliens.
  • Non-Occupant Co-Borrowers.
  
  Credit Requirements
  • Traditional and Non-Traditional.
  • The minimum credit score is 680.
  • Higher scores are required in certain instances. Please refer to the Maximum Loan Amount/LTV grids on the previous pages or contact your Funding America broker.
  
  Qualification
  • All non-interest-only loans will be qualified at the note rate, regardless of LTV.
  • All interest-only ARMs will be qualified at the fully indexed, fully amortizing rate (FIFA). The FIFA rate is the greater of the note rate or current index plus margin, fully amortized over the loan term for interest-only ARMs.
  
  Debt-to-Income Ratio
  • jumbo loans not underwritten utilizing DU or LP should be referred to your mortgage broker.
  • Maximum DTI of 50%.
  
  Maximum Number of Financed Properties
  For second home and investment property, borrowers may own up to 4 financed properties, including a primary residence.
  
  Subordinate Financing
  For loans with CLTVs greater than 80%, subordinate finanacing may not be provided.
  
  TEMPORARY BUYDOWNS
  • 2/1 buydowns are permitted for 1-2 unit owner-occupied properties only. The borrower is qualified at the bought down rate.
  • Buydowns are NOT permitted on cash out refinances, 3-4 unit property, second homes, investment property, loans with non-occupying co-borrowers, Interest Only loans.
  
  APPRAISAL REQUIREMENTS
  • The appraisal must be completed by a state-licensed and/or state-certified appraiser.
  • Any appraisals made “subject to repairs” will require a final inspection.
  • One (1) appraisal is required on loans of $1,000,000 or less regardless of location of property. Loans over $1,000,000 require one (1) full appraisal and one (1) field review in all areas. The lower of the two appraisal values will be utilized for LTV and loan amount calculations.
  • For cash out refinance transactions with loan amounts to $1,000,000 and cash back greater than $250,000 require one (1) full appraisal and one (1) field review appraisal. All cash out transactions with loan amounts greater than $1,000,000 require two (2) full appraisals.
  
  MORTGAGE INSURANCE
  Mortgage insurance is required for all loans with LTVs in excess of 80%. Please refer to your jumbo loan mortgage broker for acceptable insurers and required coverages.
  
  • Genworth:
  • GE will insure a maximum of 4 properties per borrower (1 primary residence, 1 second home and up to 2 investment properties)
  • MGIC:
  • Purchase and No Cash Out Refinances: Maximum loan amount of $750,000. Loan amounts greater than $750,000 are subject to MGIC review.
  • Cash Out Refinances: Maximum loan amount of $650,000. Loan amounts greater than $650,000 are subject to MGIC review.
  • Standard MGIC pricing premiums apply. MGIC Alt A- premiums apply to the following:
  • 90.01 - 95% LTV owner occupied and second home cash out refinance transactions credit score less than 680.
  • 80.01 - 90% LTV investment property purchase and no cash out refinance transactions credit scores less than 680.
  • 80.01 – 90% LTV investment property cash out refinance transactions credit scores less than 720.
  • RMIC: will not insure cash out Interest Only loans with credit scores less than 680.
  • Cash out refinance transactions for investment property is limited to a maximum loan amount of $650,000.
  • UGRIC:
    Maximum of two loans insured for the same borrower (only one primary residence or investor property).
  
  ASSUMPTION POLICY
  Assumable with lender approval and payment of fee, after the initial fixed rate period.
  
  PREPAYMENT PENALTY
  Not permitted in the following states or with the following restrictions:
  • Arkansas
  • Maine
  • Wisconsin
  • Nevada: Limited to purchase transactions only.
  
  Penalty Period:
  For properties located in North Carolina:
  The first thirty (30) months of the loan term is called the “Penalty Period.” In any twelve-month period during the Penalty Period, the mortgagor may prepay up to 20% of the original principal amount of the loan without paying a penalty. If the mortgagor makes a prepayment in excess of 20% of the original principal amount of the loan in any twelve-month period during the Penalty Period, the mortgagor will pay a penalty.
  
  

  For all other eligible properties:
  The first thirty-six (36) months of the loan term is called the “Penalty Period”. In any twelve-(12) month period during the Penalty Period, the Mortgagor may make a prepayment of up to 20% of the original principal amount of the loan without a penalty. If the mortgagor makes a prepayment in excess of 20% of the original principal amount of the loan in any twelve-month period during the Penalty Period, the mortgagor will pay a penalty.
  
  Prepayment Penalty:
  For properties located in North Carolina: The penalty will be equal to (1%) of any prepayment in excess of 20% of the unpaid principal amount of the loan.
  
  For properties in all other states:
  The penalty will be equal to the lesser of (a) six month’s advance interest on any amount prepaid in excess of 20% of the original principal amount of the loan or (b) two percent (2%) of the amount of any prepayment in excess of 20% of the original principal amount of the loan. No prepayment penalty will be assessed for any prepayment made after the Penalty Period or if the prepayment is concurrent with the sale of the property securing the loan.
  
  For loans in all states:
  No penalty will be assessed after the penalty period, or if the prepayment is due to the sale of the property securing the loan. In the event of a sale, the Mortgagor agrees to provide the Lender with evidence acceptable to the Lender of such sale.
  
  Interest Only loans without a Prepayment Penalty:

  • The loan may be prepaid at any time without penalty.
  • Any prepayments made during the interest-only period will reduce the principal balance, resulting in a reduced payment with the next monthly statement ({unpaid principal balance} times {interest rate divided by 12}).
  • Prepayments made after the interest-only period will be credited to principal as with a standard fully amortizing loan, and will not result in any monthly payment recalculation
  
  
  

  JUMBO LOAN

  question and answers can be provided by a Funding America mortgage professional.

  If your interested in a Jumbo Loan please fill out and submit the mortgage worksheet or

  For any questions, you can contact us here.

  1.347.294.4200