Wall Street Journal staffer Anya Martin, who's all over the Jumbo mortgage loan beat for her audience, takes on re-emerging interest among leaders for a fraction of a fraction of a group that's living under a bad rap from last decade's housing finance debacle.
Of particular interest for Martin here are a group of present and potential borrowers called Henrys, which stands for High-income, not rich yet--which banks would regard as low-risk, even though their documentation and income profiles may not jive with Dodd-Frank guidelines. Martin writes:
An increasing number of lenders will approve jumbo loans with down payments as low as 10%, and a few will go even lower.
The down payment amount matters to lenders because it affects a key qualifier: the loan-to-value ratio, or LTV. That’s the percentage of the loan amount compared with the total appraised home value. The higher the down payment, the lower the LTV. Newer loan products from big banks, credit unions and online lenders offer jumbo mortgages with 85% and even 90% loan-to-value (LTV) ratios.