Last week, Stearns Lending announced that is was expanding by acquiring the mortgage production channels of Primary Capital Mortgage.
On Wednesday, Stearns Lending announced another expansion, but this one isn’t an acquisition. Rather, Stearns is expanding its loan offerings to include a new mortgage offering for borrowers looking for million-dollar houses.
The new program, which Stearns is calling the “Gold Select 90 mortgage,” allows qualified first-time homebuyers to borrow up to $1 million (larger amounts available in California and New Jersey) and qualified experienced buyers to borrow up to $1.5 million dollars.
But the loan program isn’t your average jumbo loan, according to Stearns.
That’s because the Gold Select 90 mortgage allows borrowers to obtain a mortgage for more than $1 million by putting only 10% down on the home.
“Although many conventional mortgages call for a 20% down payment, this jumbo loan only requires 10%, which expands the opportunity for people who can afford a larger monthly payment but don’t have large cash reserves,” Stearns Lending said of the program.
Additionally, the loan also does not require the borrower to purchase private mortgage insurance, which helps keeps the borrower’s payments lower, Stearns said.
But the loans aren’t for everyone, obviously. There are some stipulations.
First, this 30-year fixed rate financing option is available to Stearns Lending’s retail and strategic alliance customers. Stearns also has wholesale and consumer direct lending channels.
Additionally, the mortgage must be used for the borrower’s primary residence, and eligible borrowers must have a minimum credit score of 740 (for first-time buyers) or 720 (for experienced buyers).
Stearns adds that there are “additional program guidelines,” but did not provide those.