U.S. home prices have soared to record levels, a trend that’s creating strong demand for jumbo mortgages. 312 American cities now have an average home value north of $1 million. By contrast, in 2015, just 208 U.S. cities had an average home value of a million-plus.
As a result of strong home price appreciation, volumes of jumbo loans are expected to skyrocket in the coming months.
LendSure Mortgage Corp. is embracing this new wave of high-value jumbo mortgages. We’re ramping up our Jumbo Prime Program to help a new wave of jumbo loan borrowers receive financing. With the addition of both Jumbo Prime and Super Prime financing options to your loan program toolkit, you will be increasing your ability to help even more borrowers with their unique needs. Our expertise and best-in-class customer service will help you navigate these deals – and boost your bottom line.
What is the difference between LendSure’s Jumbo Prime and Super Prime program options, and how do they differ from other lender or bank jumbo loans?
LendSure Jumbo Prime Program
LendSure’s Jumbo Prime Program is for borrowers who fall under conventional guidelines based on loan size. When working with LendSure, borrowers will get to enjoy highly competitive rates, faster turn times for initial approvals, and an easier, smoother underwrite.
- Loan amounts as high as $3 million
- LTVs as high as 90%
- Full Doc and Full Doc Self-Employed
- DTI up to 43%
- Cash out up to $500,000
- Fixed- and Adjustable-Rate Program Options:
- 30-Year Fixed Rate
- 15-Year Fixed Rate
- 5/6 SOFR ARM
- 7/6 SOFR ARM
- 10/6 SOFR ARM
LendSure Super Prime Program
With LendSure’s Super Prime Program, borrowers who don’t fit the Fannie/Freddie underwriting criteria of the Jumbo Prime Program can still qualify for the loan they need.
Some of the features offered by LendSure’s Super Prime Program include:
- With a 680 minimum FICO:
- Loan amounts up to $1.5 million at a 90% LTV
- Loan amounts up to $2 million at an 80% LTV
- Loan amounts up to $3 million at a 70% LTV
- 30-year fixed or ARM, in either case with option for 10 years’ interest-only at a 40-year term
- 12- and 24-month bank statement programs with P&L statements NOT required
- As little as 48 months’ seasoning for foreclosure, short sale, or loan modification
- Non-warrantable condos as collateral
- Up to $1 million cash out – cash out may be used as reserves
Consider a borrower looking to buy a $3 million or $4 million home – but they’re self-employed. They can’t qualify conforming loan programs because their tax returns don’t necessarily reflect their true monthly income.
For self-employed borrowers, reducing their taxable income by reporting hefty expenses is smart tax planning, but can cause traditional lenders to struggle with documenting enough income to qualify for the loan. LendSure’s bank statement program offers a solution to this conundrum.
We finance bank statement jumbo loans of up to $3 million, depending on the loan-to-value ratio and FICO score.
In addition, LendSure does not require borrowers to submit a profit and loss statement and we don’t require that the borrower be a 100% owner of the business.
LendSure’s variable expense factor is one thing that truly sets us apart. This is a common-sense approach to determining the suitable expense factor, rather than applying one expense factor to all business types. For example, a consultant may have a much lower expense factor than a factory owner.
Case study: from denial to approval
Here’s one example of recently closed jumbo loan. A borrower wanted to buy a $1.5 million home while keeping their current home and renting it out.
The borrower is a psychiatrist and has no employees, so he has very small overhead to run the business. The borrower’s broker approached one lender who used a 50% expense ratio, making the loan not feasible.
LendSure applied an expense ratio of just 10%, because of the psychiatrist’s minimal business expenses. After using market rent for the original property, this jumbo loan application flipped from a turn-down to an approval in just the blink of an eye. It was simply a matter of calling the right lender. LendSure’s variable expense ratio stands out as a deal maker in the jumbo mortgages arena.
Leveraging Tools to Lower Rates and Provide Lower Payment Options
A LendSure Account Executive can help structure deals that provide for borrowers wanting lower payment options, as well as borrowers who want the lowest rate they can get.
LendSure’s 40-Year Fixed Interest Only Program provides payment-conscious borrowers with a fixed rate for a full 40 years, while providing an Interest Only payment option for a full 10 years. This is an excellent tool to help borrowers manage their monthly cash flow.
LendSure’s Financed Rate Buy Down Program offers the flexibility to buy down their rate and finance the points, so that there is no additional cash required at closing. The financed points do not raise the LTV pricing bucket of the loan.
Take advantage of market demands by teaming up with a lender who is able to cater to your clients’ needs. Whether it’s a W2 or self-employed borrower in need of a jumbo loan, you can trust in LendSure’s ability to finance loans according to your borrowers’ unique needs. Contact us to see how our team of experts can help you today!