5% Down Jumbo Mortgage – What you Need to Know

Believe it or not, there are jumbo mortgage loan programs offered in the greater Chicago market that only require 5% down. And perhaps even more unbelievable, these loans are offered at very competitive and affordable interest rates. Here are some basics about this loan program:

• Loan amounts to a maximum $650,000 (up to $1,000,000 with 10% down)
• You can purchase a home up to a sales price of $685,000 with only 5% down
• Offered on 10/1, 7/1 and 5/1 fixed period ARMs (adjustable rate mortgage)
• Fixed period means the rate is fixed for 10, 7 or 5 years respectively
• Good credit is required (typically 700 or higher)
• PMI (private mortgage insurance) is required, and that can get a bit costly so be sure to review
• Stable employment, sufficient income, and acceptable assets are also required
• Be prepared to fully cooperate on all underwriting requests (paystubs, tax returns, etc.)

This is an ideal program for several home buying situations, including:

• Young professionals who have recently started making a sizable amount of annual income but have not had time to save for a 20% down payment
•  Someone who sold a home during the recession and has not been able to accumulate enough funds for a large down payment
• A buyer who has a large down payment saved, but wants to use some of those funds for improvements to their new home

As it is with every home purchase and mortgage transaction, you need to make sure you feel comfortable with the monthly mortgage payment and the additional costs that come along with home ownership. There is a big difference between getting approved for a mortgage loan and truly feeling comfortable with the monthly expense. So, do your homework, take the time to prepare a well thought out budget, and contact United Home Loans at 708-531-8388 for any of your mortgage needs.