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Connecticut Million Mortgage Loan
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Connecticut Million Mortgage Loan - $2MM to $40 Million Mortgage loan programs are routinely required in Connecticut to allow borrowers to purchase or refinance their residential real estate.Greenwich, Connecticut homeowners often require $2+ Million Mortgage loans to purchase or refinance their houses.
Million Mortgage Loan - $1 Million Mortgage Loan to $40 Million Mortgage Loan programs are referred to in the lending industry by the terms "super jumbo mortgage" or even "mega jumbo loan"
Jumbo mortgages are loans which exceed the Fannie Mae and Freddie Mac conforming loan amount limits. This is why Jumbo loans and super jumbo mortgages are often referred to as "non-conforming" jumbo loans or super jumbo mortgages. The jumbo mortgage limits for residential properties are as follows:
2007 Fannie Mae Conforming (non - Jumbo) Loan limits are as follows:
$417,000 Single Family Residence (SFR or 1-unit, most homes fall under this category)
$533,850 Two Family Residence (Duplex or 2-unit)
$645,300 Three Family Residence (Triplex or 3-unit)
$801,950 Four Family Residence (Quadplex or 4-unit)
Properties exceeding the abovementioned conforming loan limits are considered non conforming or Jumbo, super jumbo or mega jumbo for the purposes of the lending industry.
So what does this Jumbo Loan thing mean for $1 Million to $40 Million Mortgage Applicants?
Traditional, conventional lenders can write conforming, non-jumbo loans all day with relative impunity as Fannie Mae and Freddie Mac, large public/private-type institutional investors, will buy these loans so long as they meet very basic underwriting guidelines. So its very easy to get a non-Jumbo loan.
Regular Jumbo loans, from the conforming loan limit for the respective property type to about a $1 Million mortgage loan amount, are also relatively easy to sell toother banks and typical investors, and banks undertake more risk than they would on a conforming loan but not so much that they cannot efficiently underwrite these mortgages.
Where banks and other traditional, conventional mortgage lenders fall apart is on $1 Million to $40 Million mortgages. Because the traditional mortgage loan business requires lenders to be able to find a market to sell their mortgages so they can get back more money to write more loans, these banks and conventional institutions are very hesitant to undertake large loans unless the loan to value ratios are exceptionally low (meaning you borrow 50% or less of the value of the home). By virtue of this reluctance to write $1+ Million Mortgage Loans, these same lenders have very little experience executing these transactions, resulting in even more conservative loan qualifying criteria for Super jumbo mortgages. Add to that the fact that conventional lenders are set up primarily to serve the needs of "conforming" loan customers, which means they lack the personnel to handle complex multi million dollar real estate financing, and you can see why it is so hard to get an average mortgage broker, direct lender or bank to successfully execute a $1MM to $40 Million Mortgage loan.
So Who Handles Multi Million Dollar Mortgage Loan Financing?
$1MM to $1.5 Million Mortgage loan programs have some availability in the broader markets, however $2MM to $40 Million Mortgage loan products are almost exclusively the province of super jumbo mortgage specialists. Often drawn from the investment banking and hedge fund industries, these private firms handle the overwhelming majority of real estate financing for high net worth / high income borrowers. By bypassing the traditional lenders and banks and going straight to the underlying investors on Wall Street and otherwise, these private mortgage bankers and real estate financiers are capable of orchestrating complex transactions with significantly higher loan to value ratios than would otherwise be possible. A few are even able to allow 70%, 80%, 90% and even 100% financing (no money down) on $2MM to $40+ Million Mortgage Loans, by allowing you to use income producing assets which you retain control of in lieu of a down payment.
$1MM to $40 Million Mortgage Loan programs are available to borrowers in the following states:
Million Dollar Mortgages are available for the high net worth borrowers such as, but not limited to business executives, celebrities, professional sports stars, etc.
The average interest rates on jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.
Loans over a 1 million dollars or super jumbo loans may require more verifications than smaller loan amounts. The higher the loan amount the higher the risk. More reserves may be required as well as higher fico scores.
One reason lenders prefer to have a higher down payment from jumbo loan seekers is the higher risk involved. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan.
Option ARM Loan - Option ARM mortgages, which allow borrows to defer or prepay interest at will by offering four monthly payment options, are known and marketed under a variety of names:
The following is an attempt to assemble a rather exhaustive list of all the names by which Option ARM mortgages and other mortgages with payment options are known:
5 Yr Hybrid Option Arm
5 Yr Fixed Option Arm
1 Month Option ARM
Flex 5
Neg Am Loan / NegAm Mortgage
Adjustable Rate Option ARM
Option Plus Loan
An Option ARM Loan may increase your principal owed due to negative amortization when the monthly payment is less than the interest accrued for the month. The loan will usually be recast when the pricipal rises to 110% of the beginning principal balance.
GPM
NegAm
Pay-Option ARM
If you are considering one of these loans, make sure you are living in an area with moderate gains and not using the minimum payment option every month because if you are making only a minimum payment you could possibly lose some of your equity due to negative amortization.
Hybrid ARM
Quicken loans smart choice loan
Pick A Payment
Flex Pay Option
Minimum Payment Option Mortgage
Pick Your Payment
Fixed Rate Pay Option
Power Option
Payment Advantage Mortgage
Cash Flow ARM
Cash Flow Option Loan
Negative Amortization Mortgage
Fixed Option ARM
COFI ARM
30 Year Fixed Option ARM
Quicken buyers advantage loan
Hybrid Option Arm
The Secure Option Arm
PayOption
Negative Mortgage
1 Month MTA Option ARM
Payment Option ARM
Secure Advantage Loan
Smart 30 Mortgage
Investor ARM or Investment ARM
COSI ARM
Deferred Interest Mortgage
Pay Option ARM
Option ARM
Fixed Rate Pick a Pay
1% Mortgage
One Percent Mortgage Solution
COFI, COSI, CODI ARM
Even thought the option ARM mortgage has many different names it is still essentially the same product from lender to lender.
Pick A Pay
30 Year Flex Pay Plus
Super Jumbo Mortgage - Super Jumbo Mortgages are mortgage loans of $650,000 or more. While conventional banks and mainsteam, conforming lenders traditionally underserve borrowers of super jumbo mortgages, a few mortgage companies specialize in arranging super jumbo financing up to multi million dollar loan amounts.
Lenders specializing in super jumbo loans particularly like to see liquid assets in reserve after closing. It is much easier to qualify for lower super jumbo mortgage rates with a minimum of 6 months mortgage payments in reserves. Consult your mortgage professional about what asset reserve requirements you must meet to get optimal financing terms.
Super Jumbo Mortgages are provided by niche lenders and a few of the Top lenders in the country. Borrowers should consult a Mortgage Broker to find the best Super Jumbo Mortgage program available to them.
Some Super Jumbo Loans originally thought to be unwriteable can be obtained by cross-colaterlization. In fact many more lenders will be open to doing more of this business if the borrower(s) are willing to do this.
Interest rates on Super Jumbo Mortgages are relatively higher than a regular conventional mortgage.
Super Jumbo mortgages are considered non-conforming mortgage loans
Connecticut Down Payment Assistance Programs - Connecticut Down Payment Assistance Programs
Hartford Homeownership Appraisal Gap Financing (HAGF)
$200,000 (860) 588-4888
Hartford HouseHartford Downpayment and Closing Cost Assistance Program (HHP)
$25,000 (860) 757-9005
Manchester HOMEownership Program (HOP)
$25,000 (860) 647-3106
New Haven Livable City Initiative Down Payment/Closing Cost Loan Program (ALP)
$5,000 (203) 946-7807
Windsor Downpayment Assistance Program
$8,000 (860) 298-9060
FHA Lending in the State of Connecticut - FHA mortgage loans are an excellent source of financing in the State of Connecticut. FHA loans are a government insured loan that tends to be a little more lenient credit-wise than traditional Fannie Mae financing. With purchase money financing with just 2.25% down and cash-out refinancing up to 95% of the value of your home, FHA mortgage financing may be your best bet. FHA financing also allows gift funds as the down payment for purchase money transactions. Contact your mortgage professional at (800)515-8443 or via e-mail at PrivateClient@RefinanceOne.net.
FHA allows for financing just 2 years after the discharge of a Chapter 7 Bankruptcy, provided you have re-established good credit. You may refinance out of a Current Chapter 13 Bankruptcy payment plan provided you have the trustee's permission, a timely mortgage history, and a timely payment history on your bankruptcy. You must have had the payment plan for at least 1 year.
With many prime and subprime programs going away, FHA loans are a great way to borrow for those with a credit score below 620. Consult your mortgage professional to see how you can qualify for FHA financing.
There is an FHA Program that allows for some home improvements/repairs to be financed into a purchase home as well. Ask your mortgage professional about FHA's 203k program as well as their "Streamlined K" program. These programs allow one to purchase fixer-upper properties with little out of pocket expense.
You may also qualify for FHA financing with limited tradelines on your credit report. FHA allows for 4 alternative credit tradelines such as rent, utilities, cell phone, or any other debt paid monthly to count as your credit history.
FHA financing also allows for owner-occupied purchases of 2-4 unit properties with only 3% down and a seller concession. Consult your mortgage professional for loan limits and details.
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