Easier qualifications than Jumbo programs (which usually have a max 43% debt-to-income ratio). Empire’s maximum Debt-to-Income ratio is 50% on these programs, although certain scenarios may require a lower ratio, this is the absolute limit for most transactions.
Easier qualifications than Jumbo financing. 30, 20, 15 and 10 year fixed rates terms available. These loans are fully amortized and have monthly payments that never change over time! The longer the loan term, the more time it will take to pay the loan off and therefore your payment will be lower.
Loan Amounts
- Loan Amounts from $726,201 to:
- $1,089,300 (1-unit)
- $1,394,775 (2-unit)
- $1,685,850 (3-unit)
- $2,095,200 (4-unit)
- Click here to see your max county limit
Credit Scores
Minimum credit score 620. If there is more than one borrower, we will use the lowest middle score among all borrowers.
Property Types
- Single Family Home
- Condominium
- 2-4 Unit Properties
- Super Conforming rates begin at loan amounts over $726,200 and go as high as $1,089,300 (for one-unit properties) in high balance counties. Traditionally easier qualifications guidelines than those of Jumbo loan products.
- Monthly mortgage payment never changes. Although proportions of principle vs interest will change as you pay the balance down. Go to the Calculator Page to see amortization tables.
- If you have private mortgage insurance on the loan you can remove this insurance without refinancing. Simply call the servicing department and request removal once your property has achieved 20% equity.
- Impounds for monthly payment of taxes and insurance are not required in CA unless your loan exceeds 90% of the value. Loans in TX and FL will differ on this requirement. There may be a price improvement for impounds.
Tips
- If you are above the loan level of $726,200, you may want to consider paying the principal balance down to this level. The interest rate pricing may be better – check out and compare loan sizes in our Instant Rate Quote engine!
- The 15-year fixed rate mortgage is recommended by Empire, if you don’t mind the higher monthly payments which results in the loan being paid off in a shorter amount of time. And, with lower interest rates you will be paying less interest over the life of the loan. You will also see equity increasing as the substantial monthly principal payments add up!
- If you are thinking of refinancing an existing 30-year fixed mortgage, consider the 20-year fixed rates. Shaving years off of your loan term, this loan will improve on your goal of paying off the mortgage earlier than you originally intended.
- Additional principal payments monthly, known as pre-payments, is another good idea. These lower the principal loan balance to which the interest rate is applied monthly, therefore providing lower interest expense and more principal payment monthly. Many clients prefer this method rather than committing to a 15-year fixed rate loan, deciding for themselves when and how much additional capital to contribute to the mortgage.
Home Purchase
Down Payments
Minimum Down Payments vary depending on several factors including occupancy type, property type, and credit score. Generally, these rules follow for minimum down payment with a 620-credit score:
- Primary Residence: 5%, 15% for two units, 20% for 3-4 units.
- Investment Property: 20%, 25% if two to four units
- Second Home: 10%
Mortgage Insurance (MI)
If you are putting down less than 20%, private mortgage insurance will be a requirement on the loan. These two options are available to you:
*Note, the better your credit score, the more down payment, the lower the risk and therefore the cheaper MI cost.*
- PMI: Private Mortgage Insurance, a monthly premium amount charged to you in addition to your principle & interest mortgage payment.
- LPMI: Lender Paid Mortgage Insurance, there is no additional monthly premium payment, but the interest rate is increased to offset the MI expense. LPMI pricing is not available on our website, so please call or email us for a quotation.
While PMI may give you a higher monthly liability than LPMI, but once you reach 80% LTV (loan divided by value), you can cancel PMI and without affecting your low rate of interest.
Qualifications
Easier to qualify for than Jumbo loan programs (maximum of 43% debt-to-income ratio). The debt-to-Income ratio maximum is 50% on these programs, although certain scenarios may require a lower ratio, this is the highest allowable (DTI=Debt/Income) limit for mortgage transactions.
Gift funds may be used for primary or second home transactions only. Gifts can be from a relative, fiancé or domestic partner only. Minimum required borrower contributions may apply in certain cases.
Refinance Your Home
Loan to Value (LTV)
The loan to value is the loan divided by the value of the home, represented as a percentage. Loan pricing on interest rates factors in what the LTV percentage is on the transaction. With more equity in the property, rates and pricing improve as the perceived risk in the transaction decreases.
Maximum LTVs change depending on the occupancy type and type of property:
- Primary Residence:
- Rate/term refinance (No cash-out): 95% max, 85% two unit, 75% three-four units.
- Cash-out refinance: 80% max, 75% two to four units.
- Second Home:
- Rate/term refinance (No cash-out): 90% max
- Cash-out refinance: 75% max
- Investment Property:
- Rate/term refinance (No cash-out): 75% max
- Cash-out refinance: 75% max, 70% for two to four units.
Cash-Out
Cash-out interest rates will be more expensive than rate/term interest rates, and best pricing can be found by keeping the LTV under 60% if at all possible. You should see significant pricing improvements at this level.