With home prices continuing to rise without any relief in sight, more lenders are beginning to offer new jumbo mortgage products in an attempt to keep up with those rising prices.
Earlier this week, it was Verus Mortgage Capital, a correspondent investor that offers residential non-prime lending solutions, and Eave, a jumbo mortgage lender in Colorado, that rolled out new jumbo mortgage programs.
Now, Caliber Home Loans is unveiling a new jumbo mortgage program of its own – and this one features loans of up to $2 million with as little as a 5% down payment and no mortgage insurance.
According to the company, the new program is called “Elite Access.” Under the program, borrowers may qualify for up to $3 million in funds with a down payment as low as 10% and a FICO score of 700. Borrowers can also get a loan of up to $2 million with only 5% down and a FICO score of 740.
The loans also do not require mortgage insurance.
According to Caliber, the “Elite Access” loans are available in varying loan terms and options, including fixed-rate and adjustable-rate loans. On the adjustable-rate front, Caliber is making both 5/1 and 7/1 adjustable-rate mortgages available in the new jumbo program.
In a release, the company said that it is launching the 5% down jumbo program to help more borrowers purchase or refinance immediately.
“The 95% loan-to-value ratio provides true affordability to more potential homeowners and flexibility for investors in markets where home prices are rising rapidly but mainstream banks are not able to respond in a timely manner,” the company said in a statement.
Caliber CEO Sanjiv Das said the new mortgage program will help the nonbank compete with banks that usually offer these types of loans to select clientele only.
“At Caliber Home Loans, we’re always working to increase opportunities for home ownership,” Das said. “We’re truly excited about Elite Access, as it empowers consumers and investors in markets with rapidly rising home prices to participate in property ownership. Caliber offers a unique jumbo product that competes with bank jumbos that tend to be offered to private wealth management clients.”
[Update: After publication, Caliber provided more details about the loan program. This article is now updated to reflect the full details of the program.]