Buy Bigger. Borrow Better.

Jumbo loans let you buy your primary residence (house or condo) with only 5% down with an Adjustable Rate Mortgage (ARM). 

Here are a few important words to know:
  • Adjustable-rate Mortgage (ARM): Variable-rate home loan with a rate adjustment at a predetermined time, usually in five or 10 years.
  • Lender Paid Mortgage Insurance (LPMI or MI): With LPMI, the buyer doesn't need to pay monthly mortgage insurance since the lender pays the pays the policy upfront.
  • Loan-to-Value (LTV): The Loan-to-Value ratio is how much money you borrow compared to the home’s worth (value). The LTV determines the amount you can finance and how much you have to put down. 
  • Debt-to-Income (DTI): This ratio is the measure of the amount of monthly debt you carry, including your new house payment, versus your monthly income. This ensures that you can afford the new payment comfortably. 
For example, if you have a credit score of at least 720, then you may be eligible to finance up to $850,000 with only $42,500 down. With this product, borrowers get to take advantage of LPMI. 
Another great feature is that you can have an additional person assist in helping you qualify for your loan up to the figures you disclosed. This makes it easier to reach the income threshold required for your purchase.
These sparkling details only scratch the surface of the Jumbo loan program.1 If you’re ready to move up and get your own Jumbo, give us a call.

1Prior to closing, all borrowers must apply to be members of Alliant Credit Union. Membership process must be followed; membership application should not be submitted with underwriting file. Borrowers will need to submit their membership application form at least 10 days prior to close. Alliant provides the $5 minimum to open the membership account. 
- By The Compass Hawaii Team, Jan 29, 2019