Luxury Home Financing

Typical Luxury Home Financing Options:

JUMBO MORTGAGE: Loans over the conforming loan limit offered by Fannie Mae and Freddie mac. Currently $627,000 in the states we serve,, and typically up to $2,000,000.

SUPER JUMBO MORTGAGE: Home loans typically over $2,000,000. Generally these loans are one off loans offered on a case-by-case basis from a limited number of lenders and banks.

Specialized Financing Options, including:

• ✅ Single Family Loans over $766,550 in most areas. (as of Dec 2023). Higher in 'high cost areas' of Colorado and Florida.
• ✅ Self-employed borrowers
• ✅ Assets based loans. No income required.
• ✅ No Tax Returns
• ✅ Bank Statements for Income
• ✅ NON-QM Loans
• ✅ Interest Only Options
• ✅ Loans up to $3 million

Down Payment Requirements

Unlike the typical first time home buyer struggling to come up with even a small down payment, most luxury home owners can easily meet down payment requirements, which usually start at 20% down.

You may be able to find some options with as little as 10% down, but that is not normal.

Luxury Home Financing Interest Rates

There is no centralized secondary mortgage market, (think Fannie Mae and Freddie Mac) for the jumbo loan / luxury home market. This means the typical lender will have to hold the loan on its own books for the life of the loan.  What does this mean to you?  Simply that you should expect different interest rates, and usually a little higher, than you commonly see advertised for traditions loans.

Closing Costs for Jumbo Luxury Loans

As with the interest rates, closing costs on jumbo luxury loans will differ from your more common traditional loan. Everything will cost a bit more.  The appraisal for example, is currently between about $500 - $700 on a modest home, but is not uncommon for a luxury appraisal to be in excess of $2,000 - AND it is common that the lender may require TWO appraisals for the luxury home.

One time pro-rated escrows account startup requirements for taxes and insurance can really add up too.  A few months of up-front taxes  on a property with $30,000 or more in property taxes adds up fast.

It is also common for lenders on luxury loans to only offer loans with some discount points required up-front in order to give you the best possible interest rate.