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The top end of the housing market is different from the bottom and middle end.
It's not just that luxury homes tend to have sleek finishes and desirable features both inside and out — although that's certainly one big reason — that more expensive homes may also require different types of mortgage lending products and a fundamentally different approach to the loan underwriting process to account for nontraditional assets. The solutions that work for most home buyers don't necessarily suit buyers in the luxury real estate world.
So whether you're looking for your first luxury home or are ready to add to your existing real estate portfolio, you'll benefit from working with a mortgage solutions provider that understands luxury real estate and can customize a lending solution for your specific needs. Local market expertise is also a plus.
With that in mind, if you’re considering a luxury mortgage, here are three strong contenders to consider: Each offers buyers unique features and benefits, and all are worth a closer look.
Image courtesy of Multiply Mortgage
Increase your mortgage
Multiply Mortgage is an innovative fintech company that offers the ideal combination of personalized, responsive service and competitive pricing across a range of mortgage types. Unlike many of its competitors, Multiply Mortgage works hard to unlock hidden value in assets, such as stock-based compensation, which allows buyers to qualify for larger loans and lower interest rates. Every point counts, especially when it comes to jumbo loans for luxury properties.
Multiply Mortgage can introduce borrowers to common and less common mortgage structures, including 30-year fixeds, 15-year fixeds, interest-only options, and a variety of ARM products. Our experienced mortgage professionals are available to assist clients with every step of the homebuying process and can even assist with refinancing needs.
Image courtesy of Citibank
Citibank
Citibank (also known as Citi for short) is one of the largest banks in the U.S., with a strong digital presence and a vast branch network staffed with experts who know the areas they serve and actively work with first-time luxury home buyers, repeat customers, and existing luxury homeowners looking to refinance.
Citibank jumbo mortgages come with different terms and structures and may offer benefits that other mortgage products don't have (such as higher loan-to-value ratios to qualify for). However, because jumbo mortgage products can require higher credit scores and higher cash reserves, buyers should speak with their loan officer to understand what's required and ensure they're choosing the best solution for their needs.
Image courtesy of Flagstar
Flag Star
Flagstar is another leading lender that offers flexible, competitively priced loans for luxury homebuyers. Their maximum loan amounts are higher than some of their competitors, and they're active in the second home market, making them a good option for buyers looking to expand their real estate portfolio. At the same time, Flagstar is happy to serve first-time luxury homebuyers and may offer a primary loan product that doesn't require mortgage insurance in some circumstances.
In addition to purchase loans, Flagstar also offers conventional and cash-out refinance loans for luxury properties and other real estate and non-real estate loans.
Find a luxury mortgage solution that fits your needs
It's clear that luxury home buyers have many competitively priced mortgage options to fit their budget and homeownership goals. While the providers on this list are currently excellent choices for luxury home buyers in the U.S., there are many others out there that offer excellent service to their customers.
Not all of these luxury mortgage solutions are created equal. Some, like Multiply Mortgage, pride themselves on personalized service with deep local market expertise and tailor-made solutions that consider non-traditional assets like pre-IPO equity. Others are larger organizations that serve millions of customers across the U.S. and have the experience to match, but they may not be as personalized or responsive as their smaller, more localized competitors.
As you go through your home buying journey, stay open-minded and avoid choosing a mortgage lender simply because they are ‘well known.’ Buying a home is one of the most important decisions you’ll make in your life, so it’s worth working with a partner you feel comfortable with.