5% down jumbo mortgage on a Chicago condo? Yes, we do them all the time.
Posted by: Mike Dulla, President, United Home Loans
The Chicago condo market is pricey and these higher prices usually come with higher down payment requirements. Not so long ago, if you wanted to buy a $600,000 condo, you needed a down payment of $120,000, which is 20%. Over the last few years, we have introduced a jumbo loan that only requires 5% down for loan amounts to $650,000.
There are a few strict guidelines that you must meet in order to qualify for this program and some program restrictions as well. Below is a brief summary:
• 5% down on loan amounts to $650,000
• 10% down on loan amounts to $1,000,000
• 10/1, 7/1, 5/1 and 3/1 ARMs only (adjustable rate mortgage)
• Primary residences only
• Single family detached, townhome or condos
• Minimum credit score of 700
• Mortgage insurance (PMI) is required
• Debt to income ratio of 45% or less
What program is best for you? What down payment option is ideal? Should you opt for lender paid PMI or borrower paid monthly PMI? Give us a call at 708-531-9060 to help you find the right answers. I can promise you our mortgage bankers will be informative, professional and polite – and they will not be pushy.