Many potential buyers are discouraged by the strict qualification criteria and large down payments required for many loans. While major banks and credit unions are ideal to work with standard jumbo loans, which offer more affordable financing, a large number of people are still denied. This is because most giant lenders always want a 20% down payment with perfect credit. If you land slightly outside of their subscription parameters, you will likely be denied.
To allow more borrowers to qualify for jumbo loans, Griffin Funding has expanded the subscription box while maintaining very competitive rates. We designed these loans with “common sense” underwriting in mind so that we could offer our jumbo near-miss loans with as little as 3.5% down payment.
We will allow…
- 620 credit score for loan amounts up to $2.5 million (30% down payment required)
- 660 credit score for loan amounts up to $2.5 million (20% down payment required)
- 700+ credit score for loan amounts up to $1.5 million (3.5% down payment required)
- 700+ credit scores or loans up to $1.75 million (5% down payment required)
- 720+ credit score for loan amounts up to $3 million (as little as 10% down payment required) -> Apply now
- Up to 55% debt to income ratio
- As little as 10% down payment on a second home
What is a Near Miss Jumbo Loan?
A near-miss jumbo loan, also called a big bank denial, is a subtype of jumbo loan designed for people who need a large sum to buy a home because they don’t have the cash. necessary to do so. A nearly missed jumbo mortgage is considered a non-qualified (non-QM) mortgage. This type of alternative loan also includes asset-based mortgages which are recommended for high net worth borrowers and bank statement loans for independent borrowers. Non-QM Loans are not required to comply with Consumer Financial Protection Bureau requirements standards for qualifying mortgages.
To meet the needs of a growing population of potential borrowers who do not meet the more stringent Freddie Mac or Fannie Mae loan requirements, nearly missed jumbo mortgages have been created with less restrictive parameters. Although you still need a respectable credit score and substantial income, jumbo near-miss loans are more forgiving if you have fluctuating cash flow or “good credit debt” like large student loans. .
Near miss mortgages are available on owner-occupied primary residences and second homes. We are one of the only lenders in the country that only requires a 10% down payment on a second home or vacation home.
When is a Near Miss Jumbo loan recommended?
Generally, nearly failed jumbo loans are recommended for those who have not been approved for traditional mortgages and standard jumbo loans, such as people who have previously been turned down for a mortgage due to a high debt ratio, from a recent credit event, low income declared in their tax return or who have been self-employed for less than two years. Those with high student debt also find it difficult to buy homes and invest in real estate due to strict credit requirements and may be well suited for this type of loan.
Almost missed mortgages are popular among young aspirants first buyers, long-term owners who are trying to refinance or those who wish to buy a second home. If any of these circumstances apply to you, you should consider a near-miss jumbo loan to secure the funds you need.
Do Jumbo Loans require a 20% down payment?
While standard jumbo loans generally require a reduction of at least 20% to reduce lender risk, near miss jumbo loans through Griffin Funding do not.
Can you get a Jumbo Loan with 3.5% down payment?
Yes, eligible applicants can get a jumbo loan with a 3.5% down payment. This lower down payment has opened up the possibility of home ownership to a wider demographic. The required down payment will depend on several factors, including the amount you wish to borrow.
What qualifies you for a Near Miss Jumbo loan?
Near-failed jumbo loans have extended the luxury of home ownership to more borrowers. Instead of being quickly dismissed based on black and white qualifications, borrowers are viewed on a broader level. Near-missed jumbo loans allow lenders to consider a more complete borrower profile, including a slightly lower FICO score, to determine your ability to repay the loan. As such, we offer more flexible terms to qualify for a near-miss jumbo loan:
- Instead of a 20% down payment, we will only allow a 3.5% reduction up to $1.5 million, a 5% reduction up to $1.75 million, and 10% discount up to $3 million (loan amounts available up to $5 million with more down payment)
- Instead of the normal leverage ratio limit of 43%, we will allow you to go up to 55%
- Instead of a 720+ credit score, we will allow a 620 credit score (no credit events in the past 4 years and credit scores below 720 require larger down payments)
- No mortgage insurance
On some giant programs, instead of showing tax returns which may not accurately reflect your income to qualify, we may use bank statements to verify income if you are an independent property buyer.
Maximum Near Miss Jumbo Loan Amount
Griffin Funding strives to provide client-centric lending options, including sufficient loan amounts for our jumbo near-miss mortgages. Borrowers can get a nearly missed jumbo loan of up to $1.5 million with a 3.5% down payment and $3 million with a 10% down payment or up to $5 million with a larger down payment .
- Get a loan of up to $1.5 million with a 3.5% down payment!!!
- Get a loan of up to $3 million with a 10% down payment!!!
Flexible loan terms
Instead of just offering a 30 or 15 year fixed rate, we also offer 40 year fixed, 7 year and 5 year variable rate mortgages (ARMS) with an interest only option for the first 10 years. The lower interest rate in the early years of your mortgage benefits you in the long run because you will accrue less interest on your mortgage, especially if you can pay off a significant portion of it in the early years. If you only pay interest at first, you might end up paying higher mortgage payments after the established term, but this can be beneficial if you’re focusing on paying off student loans, investing in multiple properties, or investing in multiple properties. have restricted cash for other reasons.
Imagine being able to buy the house of your dreams for a purchase price of $3.5 million with a 15% down payment! You would have a loan amount of less than $3 million that you could fund with a 30-year fixed rate mortgage that is interest only for the first 10 years! (Interest only requires a 15% discount up to $3 million or a 10% discount up to $2.5 million.)
Imagine being able to buy the house of your dreams for $3.3 million with just a 10% down payment! You would have a loan amount of less than $3 million that you could fund with a 30-year fixed rate mortgage or a 7-year arm.
Imagine having a credit score of over 700 and being able to buy the house of your dreams for $1.5 million with just a 3.5% down payment ($52,500)!
Apply for a Near Miss Jumbo Loan
If you’ve encountered obstacles while trying to qualify for a mortgage, you may feel like you’ve run out of options. Our knowledgeable team can help guide you in the right direction by determining if a near-miss jumbo loan or other non-QM loan is the best fit for you.
The home buying process can seem complicated and time-consuming, but our experts prioritize efficiency and strive to close purchase loans in 30 days or less. With diverse and flexible mortgage options like our 3.5 minute jumbo loan, getting a loan with Griffin Bayside Funding makes it much easier to apply for a loan and buy your first or second home.
Contact the experts today at 619-393-8458 or stop by our GF Bayside location located in the historic El Cordova Hotel Plaza at 1339 Orange Avenue, Suite 8, Coronado.