Stearns Lending LLC, a provider of residential mortgage lending services, has introduced a new mortgage product to help borrowers secure financing for homes worth more than $1 million.
Whether a home buyer is upgrading to a larger home or lives in an area with high property costs, the new Gold Select 90 mortgage allows qualified first-time home buyers 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.
This 30-year fixed rate financing option, available to Stearns’ retail and strategic alliance customers, is a variation of the common jumbo loan and must be used for the borrower’s primary residence. In addition to higher borrowing limits, home buyers are not required to purchase private mortgage insurance.
Although many conventional mortgages call for a 20% down payment, Stearns says its jumbo loans require only 10%, which expands the opportunity for people who can afford a larger monthly payment but don’t have large cash reserves. In addition to other program guidelines, eligible borrowers must have a minimum credit score of 740 (for first-time buyers) or 720 (for experienced buyers).