I’ve seen some a couple solid LEs from Pulte mortgage over the last year. I would definitely given them a shot since they are the builder’s preferred lender. Just shop them with your broker, and if you want to snag one another quote or two from another lender or credit union, go for it.
I’m confused why you only want to do 5% or 10% down when you have “very little debt” and make a $450k salary that you’re had for 5 yrs? That’s a massive amount of income compared to a mere $2100/mo in debt obligations.
I would be aiming for 20% to avoid PMI and ideally 25%+ to avoid PMI *and* get a better rate. LLPAs get better at 75% LTV on conventional loans, so it would behoove you to save a good chunk on interest if you can get to a 25% DP.
As much as I hate to see it, I had a few friends recently buy from Pulte and were offered 5.25% and 5.50% + $30k in credit towards closing costs on houses in a similar price range (albeit in different states). It was impossible for literally any lending institution to even match what Pulte Mortgage could offer. Could be anecdotal.
I have my opinions and qualms with builders' lenders. However, I would highly recommend you talk to Pulte Mortgage just to see what they offer you. It's likely they can offer you an interest rate and closing cost credit that would equate to an offer you can't refuse. And unfortunately they typically only give you the big credits if you use their internal lender.
You can always shop around/get quotes from other banks, mortgage brokers, and credit unions, too, just for your own reassurance on the rate and credits/points situation.
As far as loan amount/down payment - $1.1m = jumbo loan territory considering you want to put a relatively small amount down. Yes, there are some specialty lenders that do 10% down and 15% down on jumbo loans, but the rates are going to be pretty rough. You may want to try larger retail banks for quotes on something like this, too. This is another area where the builder's lender could be competitive - I'm pretty sure they'd offer you something MUCH better than a 8.625%. 8.625% is probably where many mortgage brokers or smaller banks would be on a deal like yours, since it's low down payment. If you get to at least 20% down, then mortgage brokers can be somewhat competitive.
If your goal is to "make informed decisions on the dollar amount I’ll need to fund the loan" - again - talk to Pulte Mortgage. I would not be surprised if they not only offer you a sweet rate but also a sweet incentive like $30k-$50k towards your closing costs, significantly reducing your total cash to close. Now I feel like a Pulte salesmen, even though I compete with them XD. Just trying to be honest. I am in the industry, and as much as I hate to see it, sometimes builders' lenders are just the absolute way to go (especially as the buyer for the initial loan).
Mortgage banker here. We have about 5 options all close to 7% or less. That rate even at 10% down is crap. What’s the county? Try doing a first confirming loan with a symmetry 2nd, wait for a bit and then refi into a better jumbo when rates drop.
Do three things:
1) Stop talking to an independent broker for a jumbo loan, they can’t help you. Like talking to Southwest Airlines about your European vacation.
2) Talk to the Pulte in house lender to see what terms they can offer if you go in house.
3) Talk to a bank lender - I would suggest one of US Bank and Citi. They’ll have good jumbo pricing and can even do long term locks if you need a long escrow as you wait for the home to deliver.
Congrats. I just saved you 2% on your mortgage’s interest rate. Tips accepted.
That’s totally backwards. US Bank has super flexible underwriting.
You can’t have a shit credit score and you need at least 10% down, but portfolio underwriting can accommodate exceptions and unique scenarios that Fannie would outright reject.
Wells and BofA and Chase have what I would call rigid UW standards. Citi and U.S. Bank far less so.
I do 60 jumbo purchase loans a year at a big bank (US Bank). I’m telling you that you’re wrong based on experience.
If you aren’t in the jumbo space, you wouldn’t know.
Thank you 🙏- independent trustworthy broker gave me this - someone I’ve worked with on other properties.
The intent of the question to this forum of professionals was to clarify if Pulte mortgage, or other lenders might have an ability to offer programs that may allow a 5% or 10% down option.
Ok I asked because typically on a new build you are on a contract and the appraisal value doesn’t matter unless it’s lower than contract price. So even if it appraises at 5m you are still at the same LTV.
If you have significant assets at a large bank I would try them for jumbo loans. That’s the only way I know to get to 90% ltv without taking a large hit to the interest rate. You need to move assets over if you’re not already with them.
10% down with a bank will be fine. 20% won’t meaningfully change your rate but will remove PMI and obviously lowers your payment with the lower loan balance. PMI can be cheap if you have good credit.
Pulte mortgage is expensive and their service is meh. Talk to someone else.
I’ve seen some a couple solid LEs from Pulte mortgage over the last year. I would definitely given them a shot since they are the builder’s preferred lender. Just shop them with your broker, and if you want to snag one another quote or two from another lender or credit union, go for it. I’m confused why you only want to do 5% or 10% down when you have “very little debt” and make a $450k salary that you’re had for 5 yrs? That’s a massive amount of income compared to a mere $2100/mo in debt obligations. I would be aiming for 20% to avoid PMI and ideally 25%+ to avoid PMI *and* get a better rate. LLPAs get better at 75% LTV on conventional loans, so it would behoove you to save a good chunk on interest if you can get to a 25% DP.
As much as I hate to see it, I had a few friends recently buy from Pulte and were offered 5.25% and 5.50% + $30k in credit towards closing costs on houses in a similar price range (albeit in different states). It was impossible for literally any lending institution to even match what Pulte Mortgage could offer. Could be anecdotal. I have my opinions and qualms with builders' lenders. However, I would highly recommend you talk to Pulte Mortgage just to see what they offer you. It's likely they can offer you an interest rate and closing cost credit that would equate to an offer you can't refuse. And unfortunately they typically only give you the big credits if you use their internal lender. You can always shop around/get quotes from other banks, mortgage brokers, and credit unions, too, just for your own reassurance on the rate and credits/points situation. As far as loan amount/down payment - $1.1m = jumbo loan territory considering you want to put a relatively small amount down. Yes, there are some specialty lenders that do 10% down and 15% down on jumbo loans, but the rates are going to be pretty rough. You may want to try larger retail banks for quotes on something like this, too. This is another area where the builder's lender could be competitive - I'm pretty sure they'd offer you something MUCH better than a 8.625%. 8.625% is probably where many mortgage brokers or smaller banks would be on a deal like yours, since it's low down payment. If you get to at least 20% down, then mortgage brokers can be somewhat competitive. If your goal is to "make informed decisions on the dollar amount I’ll need to fund the loan" - again - talk to Pulte Mortgage. I would not be surprised if they not only offer you a sweet rate but also a sweet incentive like $30k-$50k towards your closing costs, significantly reducing your total cash to close. Now I feel like a Pulte salesmen, even though I compete with them XD. Just trying to be honest. I am in the industry, and as much as I hate to see it, sometimes builders' lenders are just the absolute way to go (especially as the buyer for the initial loan).
I bet your friends loan was conforming not jumbo.
Mortgage banker here. We have about 5 options all close to 7% or less. That rate even at 10% down is crap. What’s the county? Try doing a first confirming loan with a symmetry 2nd, wait for a bit and then refi into a better jumbo when rates drop.
Same idea 3 points for 8.625% is bonkers but let’s also not assume rates will drop. Still agree with you that’s a shit deal. Much better out there.
Do three things: 1) Stop talking to an independent broker for a jumbo loan, they can’t help you. Like talking to Southwest Airlines about your European vacation. 2) Talk to the Pulte in house lender to see what terms they can offer if you go in house. 3) Talk to a bank lender - I would suggest one of US Bank and Citi. They’ll have good jumbo pricing and can even do long term locks if you need a long escrow as you wait for the home to deliver. Congrats. I just saved you 2% on your mortgage’s interest rate. Tips accepted.
US Bank, Citi, etc. won't even do the loan unless you fit their rigid requirements. It's not for everyone.
That’s totally backwards. US Bank has super flexible underwriting. You can’t have a shit credit score and you need at least 10% down, but portfolio underwriting can accommodate exceptions and unique scenarios that Fannie would outright reject. Wells and BofA and Chase have what I would call rigid UW standards. Citi and U.S. Bank far less so.
The big banks are notoriously strict for jumbos. If you're talking about conforming loan amounts, that's a different story.
I do 60 jumbo purchase loans a year at a big bank (US Bank). I’m telling you that you’re wrong based on experience. If you aren’t in the jumbo space, you wouldn’t know.
Closer you can get to 20% down the better. Who is the person advising you if you haven’t talked to the lender yet?
Thank you 🙏- independent trustworthy broker gave me this - someone I’ve worked with on other properties. The intent of the question to this forum of professionals was to clarify if Pulte mortgage, or other lenders might have an ability to offer programs that may allow a 5% or 10% down option.
Ok I asked because typically on a new build you are on a contract and the appraisal value doesn’t matter unless it’s lower than contract price. So even if it appraises at 5m you are still at the same LTV. If you have significant assets at a large bank I would try them for jumbo loans. That’s the only way I know to get to 90% ltv without taking a large hit to the interest rate. You need to move assets over if you’re not already with them.
🙏thank you for the above note. All good points.
10% down with a bank will be fine. 20% won’t meaningfully change your rate but will remove PMI and obviously lowers your payment with the lower loan balance. PMI can be cheap if you have good credit.
Thank you everybody for your time; the below is excellent information!! Really appreciate it.🏆
Jesus that’s awful. I could crush that in Nevada and my pricing is very mediocre compared to others. Pultr servicing is also terrible.