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Jumbo mortgages are kind of a big deal. How big? They don’t even bother to show up to the party unless you’re trying to get approved for a mortgage of more than $453,100.

But not everything about a jumbo loan has to be supersized. In fact, one significant portion of your loan investment just got smaller.

You can now get a jumbo loan through Quicken Loans with a 10% down payment instead of the 20% that’s typically been required within the mortgage industry over the years.

It gets even better. Even with a down payment of less than 20%, there’s no private mortgage insurance required with this loan option. That’s a big win for our clients. In celebration, we thought we would take a look at the types of clients who benefit most from this change.

High-Priced Homes

Each month, Quicken Loans publishes an index that includes home values for many of the nation’s biggest housing markets. There are areas of the country, particularly out West, where housing markets are hot right now. This is a really good thing if you own a home in one of those markets because your investment is seeing strong value growth.


Depending on where you live, getting a jumbo loan doesn’t necessarily mean you’re looking at an extravagant mansion. You might instead be picking out a two-bedroom, one-bathroom home in Palo Alto, California. Home prices being what they are in the area, you could be very easily priced out of a traditional conforming loan amount.

The reduction in minimum down payment to 10% helps minimize the barrier to entry by making the savings goal a little more attainable. You still have to save your pennies, but you should be able to get into a home sooner.

Financial Flexibility

Many of you are financially savvy. You read the Zing Blog, and you have a leg up.

In all seriousness, though, you may find that you have money invested in high-performing accounts that you might not be ready to liquidate in order to buy a house.

Requiring less money to buy and less equity to refinance can help give you more leeway in determining how your money is invested. Having additional financial options is always good, giving you more control over your investment portfolio.

No Mortgage Insurance

Any loan option where you can avoid paying mortgage insurance is particularly attractive to applicants because it’s one fewer monthly charge that you have to tack onto your mortgage payment.

Most of the time when you get a loan (excluding VA loans), you have to pay monthly mortgage insurance if you don’t have 20% equity. Once you reach that amount of equity, it can either be removed, or you’ll have the option to refinance to get rid of it.

Under this new jumbo option, there’s no mortgage insurance requirement, and you only have to put 10% down. This means more money in your pocket.

If a smaller down payment on a big loan sounds good to you, you can get started with your jumbo mortgage application or call (800) 785-4788. If you still have questions, leave them in the comments below.

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This Post Has 2 Comments

  1. Jumbo Mortgage Questions, with the following assumptions. Home purchase price $959,000, credit scores 800, 15% down, fixed rate 30 year, no mortgage insurance
    – Do you offer fixed rate for jumbo loans?
    – What is the current rate?
    – What is the debt to income ratio allowed?
    – What is the reserve requirement?

    1. Hi Sherry:

      I’m going to take these one at a time.

      1. Yes, we offer fixed rate loans.
      2. Rates change every day and are dependent on your situation, but here’s our rates page so you get some idea.
      3. The max DTI with that down payment is 36%.
      4. You have to have six months’ worth of principal, interest, tax, homeowners insurance and homeowners association dues (if applicable).

      I hope this helps. If you’d like to get started, you can reach our Home Loan Experts at (888) 980-6716.

      Kevin Graham

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