BOULDER – Guaranteed Rate is rolling out a new program called GR Flex Power. The program is designed to allow buyers to “flex” their muscles when purchasing a home valued at up to $3 million. For those buying in Boulder or the Front Range – where the housing market continues to thrive – this is good news: it may, quite literally, open some doors.
The GR Flex Power is a Jumbo Loan program. A Jumbo Loan is a type of financing that allows people to procure loans higher than the limits set by the Federal Housing Finance Agency. They are designed to finance markets where the cost of homes is high and competitive (such as Denver and the surrounding area). Once rare, Jumbo Loans are now
The benefits of GR Flex Power
GR Flex Power offers a myriad of benefits. The most significant perk is that homebuyers can put as little as 10% down (on loans up to 3,000,000). And they can do this without the usually required mortgage insurance.
Mortgage insurance is a type of insurance home buyers typically must pay when they put down less than 20% – it protects the lenders in the event the buyers default on the loan. It’s typically costly, usually priced at between .5-1% of the entire loan’s value. Depending on the price of your home, this can add several hundred dollars a month to your payment. But, with GR Flex Power, this isn’t a concern.
Other benefits include several financing options (including fixed rates and 7-year interest ARMs), interest-only options (that are available with 15 percent down payment), in-house underwriting, flexible condominium warrantability, sensible asset reserve requirements (of six months), and a total debt service to income of up to 50%. In a nutshell, a Jumbo Loan with 10% down is a rare find and the perfect opportunity to help buyers procure their dreamhouse.