Our client, who was previously turned down by another lender for credit history items, needed a jumbo loan to purchase a house in Miami Beach, Florida.
One challenge we faced was the appraised value was lower than the contract price. Because the lender bases the loan amount on the appraised value, not the contract price, our client needed a higher loan-to-value (LTV).
We were able to obtain 90% LTV for him. The tradeoff of the higher LTV was a slightly higher interest rate in the low 5’s.
Since there is no prepayment penalty, our client can refinance into a more conventional loan with a lower interest rate as soon as possible.
Do you need a jumbo loan to refinance or purchase a luxury property? We can help. Contact us today to discuss your scenario.