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The upper end of the housing market is different from its lower and middle rungs.
It’s not just that luxury homes tend to have refined finishes and more appealing features inside and out, although that’s a big part of it. It’s also that more expensive homes may require different types of mortgage financing products and a fundamentally different approach to the loan underwriting process that accounts for nontraditional assets, too. The solutions that work for most homebuyers don’t always fit for buyers in the world of luxury real estate.
So, whether you’re searching for your first luxury home or ready to add to an existing real estate portfolio, you’ll benefit from working with a mortgage solutions provider that understands high-end real estate and can tailor financing solutions to your specific needs. Local market expertise is also a plus.
With that in mind, here are three strong contenders to check out if you’re in the market for a luxury mortgage. Each offers unique features and benefits to the buyer, all of which are worth a closer look.
Multiply Mortgage
Multiply Mortgage is an innovative fintech company that offers an ideal blend of personalized, responsive service and competitive pricing on various mortgage loan types. Unlike many competitors, Multiply Mortgage goes above and beyond to unlock hidden value in assets like stock-based compensation, which can help buyers qualify for larger loans or lower rates. Every point counts, especially when it comes to jumbo loans on luxury properties.
Multiply Mortgage can connect borrowers with common and less common mortgage structures, including 30-year fixed, 15-year fixed, interest-only options, and a variety of ARM products. Its seasoned mortgage professionals stay with clients through every step of the home-buying process and can also support refinancing needs.
Citibank
Citibank, also known simply as Citi, is one of the country’s biggest banks. It has a strong digital presence and a vast network of branches staffed with professionals who know the areas they serve and are eager to work with first-time and repeat luxury homebuyers and existing luxury homeowners ready to refinance.
Citibank’s jumbo home loans come in a variety of terms and structures and may have benefits not found in its other mortgage products, including eligible higher loan-to-value ratios. However, its jumbo home mortgage products may require higher credit scores or higher cash reserves, so buyers should talk to their loan officer to understand what’s required and ensure they’re choosing the best solution for their needs.
Flagstar
Flagstar is another major lender that offers flexible and competitively priced loans for luxury homebuyers. Its maximum loan amounts are larger than some competitors, and it enthusiastically serves the second-home market, making it a good choice for buyers seeking to scale up their real estate portfolios. At the same time, Flagstar is happy to serve first-time luxury buyers and, in some circumstances, may offer primary loan products with no mortgage insurance required.
In addition to purchase loans, Flagstar offers traditional and cash-out refinance loans for luxury properties and other real estate and non-real estate loans.
Find the right luxury home mortgage solution for your needs
It’s clear that luxury homebuyers have many choices for competitively priced mortgages that fit within their budgets and homeownership goals. The providers on this list are excellent choices for luxury home buyers in the U.S. right now, but there are many others that serve their customers well.
None of these luxury home loan solutions is exactly the same. Some, like Multiply Mortgage, are smaller organizations that pride themselves on personalized service with deep local market expertise and custom-crafted solutions that take into account nontraditional assets such as pre-IPO equity. Others are larger institutions that serve millions of customers across the United States and have the experience to match, but may not be quite as personal or responsive as smaller, localized competitors.
As you get deeper into your homebuying journey, keep an open mind and avoid choosing a mortgage provider just because it’s a “known quantity.” Buying a home is one of the most important decisions you’ll ever make, so it pays to work with a partner who makes you feel comfortable.
